There are multiple benefits of a cash-out refinance in Texas, but working with the right lender is key. Texas homeowners with a mortgage loan can benefit from refinancing their home to do a number of things.
BrightPath is the foremost private mortgage lender in the state of Texas. Their experts know exactly how you as a homeowner can reap the benefits of refinancing your home.
In the state of Texas, refinancing guidelines and rules used to be stricter than in other states. Luckily, these rules are no longer as strict in the beautiful Lone Star state as they used to be. Paired with equity levels still on the rise, now is the perfect time to consider refinancing. Texas mortgage lenders refer to a cash-out refinance as a Section 50(a)(6) loan or an A6 home equity loan.
Let’s examine the benefits of a cash-out refinance in Texas with your existing mortgage and home equity.
Texas Cash-Out Refinance Rules
Two big factors determine whether a cash-out refinance can be right for you. First, it requires a homeowner to have at least 20% equity, Second, you need to have a good credit score. Essentially, a cash-out is extracting or taking out cash from your home equity.
Refinancing your home can help you:
- Pay for home improvements or renovations, which increase the value of your home.
- Consolidate your debt (credit cards, auto, medical, or student loans).
- Make a down payment on an investment property.
- Spend your money on other long–term needs, but not short–term wants (car, vacation, jewelry, etc.).
A cash-out refinance in Texas provides you with two solutions.
- A new mortgage will replace your current home loan at your primary residence. This gives you an opportunity to pay less interest and/or lower monthly mortgage payments.
- You’ll receive a lump sum of money, which is borrowed against your home equity. You can spend this as needed (explained above).
What if I just want a cash loan backed by my home’s equity?
Yes, ask a private mortgage lender how you can keep your existing mortgage in place and get a home equity loan or a home equity line of credit (HELOC) instead of refinancing.
Can I apply for a lower mortgage rate without refinancing and touching my equity?
Yes, you don’t have to dip into your equity to get a lower interest rate. Similarly, you can replace an adjustable–rate loan with a fixed–rate loan.
Learn about other types of refinancing. For example, do you have an FHA, USDA, or VA loan? Then, a Streamline Refinance can give you a new lower rate mortgage, plus save you time and money on closing costs.
Cash-Out Refinance in Texas with BrightPath
Are you looking to do a Texas cash-out refinance mortgage? The time is now. Get moving on the right path with BrightPath.
BrightPath does much more than help first-time home buyers get mortgage loans. They are expertly skilled in cash-out refinance, rate-and-term refinance, as well mortgages for the self-employed, veterans, and others.
Contact BrightPath now to find out of a cash-out refinance in Texas is good for your financial future.