Cash-Out Refinance in Dallas, TX

Texas Home Mortgage Refinance: Unlocking Equity with Cash Out Refinancing

Cash-Out Refinance in Dallas, TX

At HomeTown Lending, we excel in guiding homeowners through the refinance process, especially when it comes to Texas Cash Out refinances. Our streamlined in-house underwriting and processing enable us to close loans rapidly, often within 21 days. Cash out refinancing can be a strategic financial move to consolidate higher-interest debts or to allocate funds for significant expenditures, effectively leveraging the equity in your home.

Strategic Uses for Cash Out Refinancing

  • Reducing the burden of high-interest credit card debt
  • Financing home renovations or improvements
  • Securing a down payment for an investment property
  • Affording a second home
  • Covering major discretionary purchases

While it’s ultimately your choice how to utilize the funds, it’s wise to invest in long-term benefits rather than temporary desires, considering the long-term repayment and interest that comes with a new mortgage.

Streamlined Cash Out Refinancing

To get started, apply online for a cash-out refinance with HomeTown Lending. Our team is prepared to assist you in determining if this financial strategy aligns with your goals.

2024 Cash Out Refinance in Texas: What You Need to Know

Texas cash-out refinance regulations differ from other states, yet they have become more flexible over time.

To be eligible, you’ll need respectable credit and over 20% home equity. With rising equity levels across Texas, many homeowners are likely to meet these criteria. If you’re considering tapping into your home’s equity, our refinance specialists are here to discuss your options.

Important Texas Cash Out Rules:

  • Capped Lender Closing Costs: Lender fees cannot exceed 2% of the loan amount, not including third-party fees such as legal, appraisal, and title insurance costs.
  • Maximum 80% LTV: The new loan cannot surpass 80% of your home’s value, safeguarding 20% of your equity.
  • Consolidation of Second Mortgages: Any existing secondary financing must be paid off with the new cash-out refinance.
  • Six-Month Ownership Requirement: You’re eligible for a cash-out refinance only if you’ve held your current mortgage for at least six months and have not done a cash-out refinance in the past 12 months.
  • Waiting Period After Major Credit Events: A seven-year waiting period is required after foreclosure, bankruptcy, or short sale before qualifying for a cash-out refinance.
  • Exclusions: FHA, VA, and USDA loans do not qualify under Texas Section 50(a)(6) regulations.
  • Primary Residence Only: These cash-out rules apply exclusively to your primary home, not to investment or secondary properties.

Your Cash-Out Refinancing Partner in Dallas: HomeTown Lending

At HomeTown Lending, we’re not just here to offer loans; we’re here to forge lasting relationships with homeowners seeking to make the most of their home equity. Connect with us to explore how a Texas Cash Out refinance can serve your financial strategy and enrich your future.