Your equity. Your decision. I just make sure the math holds up.
I'll show you how much you can pull, what it does to your payment, and whether a second lien would cost less. Not every cash-out makes sense. I'll tell you if yours doesn't.
Overview
A cash-out refinance replaces your existing mortgage with a larger one. You get the difference in cash. Renovations. Paying off high-interest debt. Buying another property. Starting a business. The use is yours.
The rates are higher than a standard refinance, and the pricing adjustments are steeper. That's the cost of the flexibility. And in Texas, cash-out refinances on your homestead carry constitutional requirements that don't exist anywhere else. An equity cap. A mandatory cooling-off period. A fee limit. Closing location restrictions. Spousal consent.
I also run the comparison that most lenders skip: cash-out refi versus a second lien. If you're sitting on a first mortgage rate from a few years ago, giving up that rate on the entire balance just to access a smaller amount of equity is often the wrong move. A second lien lets you keep the low rate and borrow separately. I show you both options.
Key Details
How I Handle This
I pull your current loan details and estimated home value. Calculate the max cash available under Texas equity rules. Price the cash-out option. Then price a second lien option. Put them side by side.
If cash-out is the better structure for your situation, we proceed. If the second lien looks like a cleaner fit because you'd be giving up a low first mortgage rate, I tell you. The answer depends on your specific numbers, not a rule of thumb.
Questions I Get
What's the max I can cash out in Texas?
Texas constitutional law sets a firm LTV cap on all homestead equity lending. This applies regardless of loan program. I calculate your maximum based on current value.
Cash-out refi or HELOC?
If your first mortgage rate is well below today's market, a HELOC lets you keep that rate and borrow separately. The total cost is usually less. If your current rate is near today's level anyway, cash-out may be simpler. I compare both.
Can I do a VA cash-out in Texas?
VA cash-out on Texas homestead properties is subject to Texas constitutional limits, which override the higher federal LTV allowance. It's more restricted than most veterans expect. I explain the details for your situation.
What are the Texas equity rules?
A mandatory cooling-off period between application and closing. A fee cap. Closing must occur at a lender's, attorney's, or title company's office. Spousal consent required even if your spouse isn't on the loan. These are constitutional and cannot be waived.
Thinking about tapping your equity?
Send me your current loan details. I'll run cash-out and second lien side by side and show you how the numbers compare.