Home Equity Loans or Cash Out Refinance (known as TX a6 mortgages) in Texas are quite different that in other states. If you’re looking to refinance and take cash out (known as a Home Equity loan), then you’ll want to understand some of the features that make Texas cashout loans unique. See below for more information.
There are many reasons that a Texas homeowner might take a Home Equity or Cash Out Refinance:
- Home Improvement or Remodeling
- Debt Consolidation – Pay off High Interest Credit Cards
- Pay for College or Education
- Investing into Business
- Go on Dream Vacation
Whatever the reason for your home equity loan, you’ll want to know the following unique characteristics about a Cash Out Refinance in Texas (Known as TX a6 Mortgage)
- Once a Mortgage is recorded as being a Home Equity/Cashout Refinance/TX a6, the loan will forever be considered this type of mortgage in future refinances – this might mean that the rate is slightly higher than the going fixed mortgage rates that are not considered Cash0ut.
- You cannot do another refinance of this type of mortgage in less than 12 months.
- You cannot convert these types of loans into a Government backed mortgage (such as FHA or VA).
- You are limited to 80% of the value of the property for the maximum loan amount in Texas.
On a more positive note, cash out refinances have excellent benefits including:
- Interest is tax deductible
- Consolidating Debt reduces overall monthly payments
- Mortgage rates are lower on first lien cash out refinances or home equity loans in most cases
There are also many myths about Home Equity Loans and Cash Out Refinances. If you’re interested in a Cash Out Home Equity Loan in Texas, call Josh Campbell today at 972-904-3694 or email firstname.lastname@example.org and get the facts.
***Note – Many lenders and loan officers make common mistakes when reviewing these types of scenarios, and some lenders have stopped doing them all together. If you have questions about whether your loan is considered a Home Equity – Cash Out – TX a6 mortgage, call me to discuss today.