- Maximum loan
- 80% of your home's value
- Frequency
- One cash-out loan every 12 months
- Lender fees
- Capped at 2% of the loan
- Waiting period
- 12 days after notice, 3 days to cancel
What it is
A cash-out refinance replaces your mortgage with a larger one and pays you the difference. In Texas these loans follow Section 50(a)(6) of the state constitution, which has stricter protections than most states.
How it works with a broker
Texas limits a cash-out loan on your homestead to 80% of the home's value, caps certain lender fees at 2%, and requires the closing to take place at a title company, attorney's office or lender's office.
I walk you through each of these rules up front, along with the timeline, so nothing about the closing is a surprise.
In Texas: The 80% limit and 2% fee cap apply to your Texas homestead. Investment properties and second homes follow different rules.
Common questions
Can I get a cash-out loan and a HELOC?
You can only have one Texas home equity loan on your homestead at a time, and total borrowing cannot exceed 80% of the home's value.
Is a HELOC a better choice?
If your first mortgage has a low rate, keeping it and adding a HELOC or home equity loan often costs less. I will compare both for you.
Figures shown are typical guidelines and can vary by lender, credit profile and property. They are not an offer or commitment to lend.
Find out what you qualify for.
Answer a few questions and I will come back with real options, usually the same day. It takes about two minutes and does not affect your credit.