Cash Out Refinance (Home Equity Loan)
A Cash Out Refinance or Home Equity Loan results when you receive cash out or proceeds from the equity in your home upon the funding of the loan. This includes money being used to payoff any other debts besides the mortgages used to purchase the home. You can use a cash out mortgage to consolidate credit cards or other high interest rate debt, do home improvements, invest, start/fund a business, college education, weddings, pay taxes or anything you want.
In Texas we have something called Texas A6 laws which make the transaction very specific and many out of state lenders that have federal preemption to state licensing employee loan officers who know nothing about Texas A6 laws. They limit the amount of equity you can pull out of your house to 80%. You cannot do more than one TX home equity loan per a year, no negative amortization, once a Texas cash out always a Texas cash out (except for when doing a reverse mortgage), and the list goes on. If you are looking to refinance a home in Texas you should consult with a licensed Residential Mortgage Loan Officer specifically trained in handling mortgages in Texas. The largest banks in the country generally employ call center loan officers lending in all 50 states and they have no specific knowledge of Texas. These companies avoid state licensing protocols by having a Federal Savings Bank designation which means they are not regulated or accountable to state regulators and their so-called loan officers are not licensed.
Now back to what we can do for you. You may be able to skip a payment or two and pay off property taxes. There is no cost or obligation to find out how much you can save. In fact we will pay for your credit report upfront for you if you call us from and tell them you read that we are doing free credit reports for those who apply for a jumbo mortgage on hotjumbomortgage.com and that you would like your free written report of what we can do to help with your home finances.