What you need to know about Texas cash out refinances

By utilizing a Texas cash out refinance homeowners can tap into their homes equity. Because Texas has very unique home equity cash out refinance laws we have put together a list of frequently asked questions regarding Texas home equity mortgages.

To receive your free customized Texas cash out refinance quote please give the Richard Woodward Mortgage Team a call today at 214-945-1066 or complete an online application now.  We are a leading Plano Texas direct mortgage lender and we want to help you.  Don't let an out of state lender tell you that you can't do a cash out.  Many lenders will not even do Texas cash out refi's.  We do, we are experts.

Did you pay cash for your home because of the tight real estate market?  We can help you tap into that equity now.

Frequently asked questions about Texas Cash Out Refinance Questions

I want to refinance my loan but the loan officer says the max he can lend is 80% in Texas. Why is that?

In Texas, the total mortgage debt, including the amount of any existing mortgages plus the projected home equity lien (whether cash out re-fi or HELOC), cannot exceed 80% of the home's current fair market value at closing. [TEX. CONST. ART. XVI, § 50 (a)(6)(B)] 

Are there any restrictions on what I can use the money from a Texas cash out?

NO. You can use the funds for whatever purpose you desire such as remodeling your home, buy a new car or investment property.  You can even consolidate your bills and lower your monthly payments or interest rate.

Is there a cap on the amount of fees a lender can charge?

Fees and charges to make the loan (not interest) cannot exceed 3% of the loan amount. [Tex. Const. art.XVI, § 50 (a)(6)(E)].  Interest is calculated as the amount determined by multiplying the loan principal by the interest rate.