Home Equity / Texas Cash Out Loans
Texas has some very unique laws regarding taking equity and cash out of your house. However, it is possible to take tax deductible equity loans out on your house in Texas to pay bills, start a business or even purchase a boat. Park Place prides itself for their specific Texas Equity Law knowledge by being from the heart of Texas, originating over $50,000,000 in Home Equity Loans since 2007 and lending only in Texas. With historic mortgage rates and new tax benefits, there has never been a better time to payoff your credit cards or add your pool by pulling those funds from the equity in your home.
Texas Cash out loans are sometimes also called Texas Home Equity Loans, Cash out mortgages, Debt consolidation loans or Texas 50-A-6 loans. These are all the same loan, but with various titles. However, there are also Home Equity Lines of Credit available which are different from the names mentioned above. Ask one of our specialists for which one fits your specific needs.
10 Reasons to Discuss Refinancing with Cash Out
Notable Texas Cash Out Laws & Notes
Note from Justin Hubbert, President: These are meant to serve only as general information, and there are numerous other laws that apply. A quick 2 minute phone call to one of our Texas licensed loan officers can determine if a cash out loan would benefit you and be allowed for your specific scenario. For a quick qualification, please call us at 512-505-6267.
Park Place Finance Equity Cash Out Specialties
10 Important Texas Cash Out Laws & Notes
- In order to pull cash out of your home, you must use a lender such as Park Place Finance located within Texas.
- The maximum amount allowed for a cash out loan is 80% of the value of the property, including any lien on the property.
- There is no pre payment penalty allowed on any equity or cash out loan. Park Place has no pre payment on any residential loan.
- You can only have one cash out loan on your property at a time. This is why we stress the importance of ensuring you get the proper cash out when starting the process.
- You must wait 12 business days to close once you have signed the initial application, so you have time to increase or decrease your exact loan amount after starting the process.
- Per Texas Law, If you have taken cash out at any time before, you must wait 12 months to refinance your current loan, even if you do not wish to take cash out again.
- You must finance onto a fixed rate, such as a 30 or 15 year fixed mortgage. Interest only, reverse mortgage or an adjustable rate are not allowed.
- These laws only apply to your primary residence.
- Rolling in closing costs, taxes or insurance into your loan does not constitute a cash out loan.
- Giving equity to an ex spouse required in a divorce decree does not constitute a cash out loan.