What Are the Home Equity Loan Rules in Texas

Texas has some pretty interesting rules for refinancing. This is especially important if you want to pull out money or their own home.There two types of refinance mortgages. The first type is called a rate and term refinancing. It is only when one wants to reduce speed or change the date of the original loan. For example, a 30-year 7% mortgage you can refinance up to 5.25%, 15 years mortgage.

In this case, they have left no payments are only change in the rate and / or to determine the initial loan. In "refinancing boom" (2001-2004) loan officer, and many mortgage brokers are not dozens of rate and term refinancing, as mortgage rates fell to low.Most people refinance home loans when the market rate is much lower than the current mortgage rates. Labs is where you can save about 1% to make sense refinance.

The The second type is called Texas refinance refinance payments. That is, if someone wants to pull money out of their homes to further reduce or change the speed or the term. Texas banned ability to pull money out of their homes, but now that it is as long as the loan meets the following criteria: 80% Texas Cash-out principle: This principle is that these loans can not exceed 80% of the assessed value of the home value.

For For example, if your home is worth $ 100,000 and the mortgage current stock $ 50,000, can go up to $ 80,000 (80% of 100k). In this way, the borrower's net $ 30,000, less closing costs.3% rule: This condition is the principle that the total fees may not exceed 3% of the loan. For example, if a 100K equity, total fees exceed $ 3000. That is, broker, title, survey, assessment, insurance, doc / prep (everything!) can not exceed 3%. This law was intended to protect borrowers, but actually penalizes lower the amount of credit, making it difficult for people with small loans to exercise their property rights. This is an excellent example of regulation does the opposite of what he had.

So for those of the loan amount under 100K, it is very difficult to make home equity, as well as state law requires that when purchasing a new policy, the name of each refinance. Name of policy is generally carried out on 1% amount.However credit, it is important to note that 3% of the law is not applicable for those who invest in the home equity. So it's actually easier to do a home equity loan for investment property than on owner-occupied properties in Texas, the 12-day rule: This is one of the rules even more special. In each home equity loan or a credit officer, mortgage broker ask you to sign the form within 12 days. This form states that the loan does not close within 12 days from the date of request. I think Texas will be 12 full days to think about the loan three days of state: then, after waiting 12 days, we have to wait 3 days for the fund.

Not to mention, has signed a definitive look and HUD (settlement statement) 24 hours ago closing.So to make things simple: the loan may not close for 12 days. At the time HUD prepared the borrower's name (s) must be reviewed and signed by HUD for 24 hours before closing. Then he can not finance loans 3 full business rules days.These why it often takes place 30 full days to fund the payment loan.Oh Texas, and on the road.

Final rule wait for 12 full months of home equity loans. So when you get the money from one year and his Texas home prices go much you have to wait years before refinancing.Because Texas home equity loans are so many rules it is important to the mortgage professional you really know the rules so that everything goes smoothly with the refinance.