Applications Closing October 2021

HOMEOWNER RELIEF STIMULUS

Homeowners are advised to take advantage of a new Mortgage Stimulus Program before it’s gone. This is likely to be the largest benefit program American homeowners have seen.

This Stimulus Program is aimed to help average American citizens and stimulate the economy. Utilizing this new service could get homeowners $271 /mo* or $3,252* per year!

Banks do not want homeowners to know about these programs as they can greatly lower mortgage payments through this simple Government-backed solution.

We recommend checking your eligibility as soon as possible before deadlines are announced or requirements are changed.

To see if you live in an active zip code, just click below.
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*https://www.forbes.com/advisor/refiroadmap/

¹ – http://www.fanniemae.com/resources/file/aboutus/media/HARP-Research-Report-030613.pdf

* – Based on Median Home Equity of Americans aged 45 to 54 of $70,000 (U.S. Census Bureau)

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Cash Out Refinance Texas

If you are living in Texas you are probably wondering if you should do a cash out refinance or a HELOC? Each situation is different, and we would be able to answer that better once we get your details. Don’t delay getting your FREE quote it’s a quick process and usually takes less than 60 seconds.

Trying to decide if a cash-out refinance is the right choice for you? With the many different choices for financing, you may find yourself confused and overwhelmed like so many of us. In this article we will explain in simple terms, the good, the bad and the ugly of Texas cash-out refinance mortgages. By the end you’ll know the types, the process and the rules surrounding them.

Frequently Asked Questions

How Often Can You Cash Out Refinance?

While there is no legal limit on the number of times your home loan can be refinanced, there are a few rules that are set by mortgage lenders that tell us, usually by loan type, the frequency you are able to refinance.

How Much Can I Get After a Cash Out Refinance?

The most common question lenders asked when talking to a home owner considering a cash-out refinance loan is, “How much cash can I get out when I refinance my home?”

You will need to have your home appraised before you are able to find out how much you qualify for. The value of your home and your specific circumstance may affect this but, typically, lenders will not let you take out more than 80% of the value of your home. Of course, this may vary lender to lender.

To know how much you are able to cash-out from a refinance you will want to know how it works.

As you make your monthly mortgage payments, you are paying down the principal of your mortgage. Another way you get equity is when there is an increase in the value of your home.

When you choose to do a cash-out refinance you are taking advantage of that equity that you have been building up over time. You get cash in exchange for taking on a larger mortgage. Simply put, you borrow more than you owe on your mortgage and you get to keep the difference.

Let’s say you bought a new home in Texas for $250,000. Over the years you have been making your monthly payments and have managed to pay off $60,000. This means, right now you owe $190,000 on your home. You want to update your kitchen and pay off some medical bills, you have decided that $30,000 is the right amount to do so.

With a cash-out refinance you take part of your equity (the $60,000 you paid off) and add what you want to take out ( $30,000 for kitchen and medical bills) to your new mortgage principal. Your new mortgage would be $220,000. After closing on the new loan you will have your $30,000.

Do not forget: you are able to do anything you want with the money you get from your equity after a cash-out refinance. This includes things like repairs and and renovations or updates you would like to do on your property, paying off bills (medical bills, student loans…) and making other payments. You do not need to specify during the loan process what it is you plan to use the cash you get back for.

Cash-out Refinance Why’s:

You may be wondering why you should or why others have chosen to do a cash-out refinance. Though the reasons differ person to person here is a small list of reasons why.

  • Renovations/Home Updates
  • High balance credit cards
  • Medical bills
  • Student loans
  • Car loans
  • Purchasing second home
  • Vacation
  • Investment property
  • Business Start-Up
  • Funeral Expenses
  • Large Purchases:
    Boats
    ATV’s
    RV’s

Texas 50a6 Cash Out Rules

In Texas, a cash-out refinance loan is also known as a Section50(1)(6) loan. Make sure while you are researching Texas 50(a)(6) loans you take a moment to familiarize yourself with the rules. Some rules regarding this loan is that cash-out refinances are not allowed on government loans. These loans that do now allow refinances would include: VA, FHA as well as, USDA loans. You are only able to do a cash-out refinance in Texas once a year.

You are not able to have a Home Equity Line of Credit (HELOC) also known as a second lien, if you have a cash-out refinance loan in Texas already. These rules apply to your primary residence only. These lending rules do not include any second homes and investment properties.

Cities In Tx: