Texas Cash-Out Refinance

What Is A Home Equity Loan?

The VA Cash-Out Refinance Loan was created for homeowners who already have a VA home loan, but need to use some of the equity in their home for another purpose. Although this VA Loan product is available to most of the country, the Texas Constitution does not allow for an equity refinance while utilizing your VA Loan Benefit. You are still able to use the equity in your home; however the program is called a Texas Cash-Out Refinance. As with the VA Cash-Out Refinance, the Texas Cash-Out Refinance allows you to use your equity to make home improvements, repairs, pay off second mortgages, or to pay off other bills such as high interest credit cards to help improve your finances and bottom line each month. For those homeowners who have built enough equity in their homes, these loans can improve their finances by providing a large sum of money at closing.

What Are Some Of The Requirements Needed?

In Texas, homestead owner-occupied properties can have an LTV no higher than 80% and the homeowner must have a 12-day waiting period before closing. “Notice Concerning Extensions of Credit” aka the 12 day letter, this disclosure outlines the home equity laws in Texas and must be signed at the time of application. Our States Constitution restrictions for Cash-Outs have some of the strictest guidelines available, one reason our values have held up against other states. Appraisals of the mortgaged property are necessary and a credit qualification process must be completed before a loan offer is made. In most cases, there must have been no late payments on the existing home loan for at least 12 months prior to applying for refinance. (Click here) to see if you can take advantage of the loan to pull out some equity.

Maximize Your Equity

A Texas Cash-Out Refinance may help you reduce your monthly bills. Most often times your current interest rate now is higher than the one you can get on the Texas Cash-Out. You can use the proceeds of your refinance for whatever you want; there are many uses for this type of refinance. Listed below are the most common for doing a Texas cash-out.

USING YOUR CASH TO PAY FOR

*Debt Consolidation – Pay bills off that have high interest rates. Example: credit cards, personal loans, auto loans, second mortgages, etc…

*Fund Renovations – Whether it’s adding additional square footage, updating the kitchen or adding that pool you always wanted.

*Pay for Your Child’s Education – Enjoy the benefits of writing off the interest for your children’s education.

*Honeymoon or Wedding – Pull out your equity to pay for your dream honeymoon or wedding you have been wanting.

*New Business Endeavor – Starting a new company can be costly; using your equity to do this could make your new business get off the ground.

*Buy Property – Buy that second home you always wanted or an investment property to rent out.

The Texas Cash-Out Refinance Makes Sense.

Using a Texas Cash-Out refinance as a way to consolidate or settle existing higher interest debts such as credit cards or personal loans is an excellent idea. Because a Cash-Out refinance is simply an increase of your mortgage, the interest rates are dramatically lower than other types of debts. Using a Texas Cash-Out refinance as a means of paying off these debts just makes good sense and is also simple – just keep paying your mortgage, no extra payments to keep track of. Think of a Texas Cash-Out refinance as a Debt Consolidation Loan with an ultra-low interest rate that could save you a bundle of money.

Get Started Now!

Because a Cash-Out refinance provides you with cash that is immediately available, you can use it for any purpose you wish to. Contact Us to get started on your path to financial freedom.