Texas Home Equity Loan Rules, Procedures, Fees, 3%
Texas Home Equity Loans have a State-mandated cap on fees of 3%. You also are limited to 80% of your home’s appraised value. You can borrow more if you’re doing an investment home equity, cash-out loan.
As a mortgage broker, I have many banks with different guidelines . Some banks like people with perfect credit, others don’t care as much. Countrywide, Wells Fargo, WaMu are just a few (hey, I’m rhyming!) of my most popular banks. When working with a mortgage broker like Mylendingplace you simply have more options than a retail bank down the street. You also save TIME since talking with me is like talking with 20 banks at once.
Also, mortgage brokers must disclose all our fees. Banks are not required to do so.
Speaking of mortgage fees on Home equity loans, did you know you don’t always have to pay your fees when you want to do an Home Equity loan? Some banks will pay most of your closing costs. Call my office at 996-8194 or my cell 577-2958
Many people don’t know you can also do an equity cash out loan on your investment property. In fact, Texas state law allow you to net more from your investment property equity loan than your own home.
So if you have car loans, student loans, credit cards that need to be consolidated into one note, maybe it’s best to consolidate this debt to a mortgage you’re not actively paying. Sure, if the mortgage is in your name your ultimately responsible, but having renters pay your home loan gives you leverage.
If I had the choice of either paying my 25K student loan off by myself or having someone else pay it, I’d probably choose “B” . (By the way, I went to Abilene Christian University (http://www.acu.edu)
For example, if you’re paying $750 out each month towards car, credit cards, student loans you can (a) continue to pay these debts until they’re gone or (b) consolidate them into your personal mortgage. (Even if the cash out refinance raises your house payment $200/month it’s still better than paying $750, right. ) But if you have an investment property with equity, you have a third option; (c)refinance the debt into your investment property.
For example, let’s say your cash-flowing $200/month on your investment property. If the home equity causes you to stop cash-flowing –and you now just break even -it’s still better than paying $750 out. Right?
I’m not a CPA, but there might be some tax-advantages to any losses associated with investment properties. Call your CPA and find out.
For those of you who have equity in their homes or investment properties ask yourself: Can this equity better serve me?
Is my equity just sitting there growing at 1-2-3-4% when you’re paying high-interest credit cards, student loans and car payments? Even if you don’t have debt a cash out loan might be good financial decision. If your home is growing at 1-2-3-4%, maybe you can pull some equity out so you can invest in a home in an area that’s growing more rapidly.
Or maybe there’s a piece of land you want to buy to ultimately build upon. There are some Lake Travis Lots growing at +8% right now.
At the very least, if your kids plan to go to UT for college (http://www.ut.edu) they’ll have to rent somewhere, right? Maybe you should buy their college house now–and while they finish Jr. High/Sr. High– the property is appreciating. Let them live there until they finish school, sell property. Avoid student loans.
Unless you have 10% to put down now, doing a cash out might just be the first step in a long-term financial plan. Cash out your equity (on your primary or investment), pay off bills, and buy appreciating assets like real estate which you’ll keep until retirement.
If you’re working with the right mortgage professional, they’ll help you view your mortgage as a tool to achieve a greater end; not just give you a fixed rate. You can either just get a debt-instrument (mortgage) or you can structure your financial future with it–it’s really about working with the right people. End of sales pitch.
So ask yourself: Can the equity in my home better serve me?
Home equity loans aren’t for everyone. You may not even have the credit score to qualify, but if you’d like me to show you some options just call me. I don’t charge application fees.
Whenever your considering refinancing your Texas property, you should weigh the costs of the refinance against the benefits. For example, as a mortgage broker, some of my banks pay most of your closing costs, other banks don’t.
When these banks pay for most of your closing costs you net a lot more from the cash out. Other banks have better rates–but you have to pay for your title policy and other stuff. This is one advantage in working with a broker (like me:) vs. your bank down the street, we simply have more options to show you.
As a rule of thumb, if you have a property that’s worth over 200K, it’s probably a good idea to go with a bank that will pay your fees like the title policy as this fee can be around 1% of the loan amount. And it’s probably a good idea ot waive escrows as creating an escrow account will reduce the amount of $ you net from the cash out.
Investment Cash Outs: Texas is a strange bird when it comes to home equity loans. You can actually pull more money out of your investment property than you could with your own home! This is strange because usually mortgage guidelines become stricter when you move from an owner-occupied unit to a non-owner (investment). But this is one example where it’s better to do the loan on an investment property.
As most of you know, I’m a huge advocate of investment property especially in this age of the no-pension, unreliable 401Ks. If you’re self-employed, your 401K/retirement plan will probably be your home, so why have at least one investment property?
If you want more information on doing an investment cash out loans, please just email me at jon@mylendingplace.com or visit http://www.mylendingplace.com. We are licensed for the entire state of Texas. If you have a Texas zip code we can do your home loan or investment equity loan.
Jon Spears
512-577-2958
We are a mortgage broker company licensed to do Mortgage Home loans (Equity loans) in the following Texas Cities:
Dallas
San Antonio
Austin
El Paso
Fort Worth
Arlington
Corpus Christi
Plano
Garland
Lubbock
Irving
Laredo
Amarillo
Pasadena
Brownsville
Grand Prairie
Mesquite
Abilene
Beaumont
Waco
Carrollton
McAllen
Wichita Falls
Midland
Richardson
Odessa
San Angelo
Killeen
Tyler
Denton
Lewisville
Longview
College Station
Baytown
Bryan
Sugar Land
Round Rock
Victoria
Port Arthur
Harlingen
Galveston
The Woodlands
North Richland Hills
Temple
McKinney
Missouri City
Flower Mound (town)
Edinburg
Bedford
Pharr
Euless
League City
Mission
Rowlett
Allen
Grapevine
Texas City
Haltom City
DeSoto
Pearland
Conroe
New Braunfels
Spring
Hurst
Duncanville
Coppell
Atascocita
Sherman
Huntsville
Texarkana
San Marcos
Del Rio
Frisco
Fort Hood
Lufkin
Cedar Hill
La Porte
Mission Bend
Nacogdoches
Channelview
Copperas Cove
Friendswood
Deer Park
Georgetown
Mansfield
Farmers Branch
Keller
Socorro
Weslaco
The Colony
Lake Jackson
San Juan
Cedar Park
Cleburne
Paris
Lancaster
Kingsville
Big Spring
Corsicana
Rosenberg
Greenville
Marshall
Cloverleaf
San Benito
University Park
Denison
Eagle Pass
Plainview
Seguin
Watauga
Southlake
Waxahachie
Alvin
Burleson
Kerrville
Benbrook
Colleyville
Balch Springs
Alice
Weatherford
Brownwood
Schertz
Bay City
Orange
Angleton
Rockwall
Pampa
West Odessa
Palestine
Nederland
Harker Heights
Dickinson
Mineral Wells
Canyon Lake
Pflugerville
Ennis
South Houston
Jollyville
Groves
Stafford
Bellaire
Gatesville
Gainesville
Brushy Creek
Wylie
Uvalde
Stephenville
Universal City
White Settlement
Portland
Donna
Alamo
Belton
Hereford
Humble
Sulphur Springs
Borger
West University Place
Addison (town)
Aldine
Mount Pleasant
Jacksonville
New Territory
Dumas
La Marque
Mercedes
Terrell
Port Neches
Taylor
Pecan Grove
Brenham
Beeville
Forest Hill
Canyon
Levelland
Robstown
Freeport
Saginaw
Highland Village
Port Lavaca
Rio Grande City
Katy
Vernon
Lockhart
Converse
Vidor
Sweetwater
Corinth
Kilgore
Athens
Henderson
Wells Branch
Cinco Ranch
Hewitt
Richmond
San Elizario
El Campo
Burkburnett
Seagoville
Snyder
Galena Park
La Homa
Clute
Jacinto City
Bonham
Lamesa
Sachse
Raymondville
Andrews
Roma
Azle
Santa Fe
Pecos
Brownfield
Seabrook
Ingleside
Eidson Road
Leon Valley
Wharton
Bellmead
Live Oak
Tomball
Webster
Rendon
Anderson Mill
Fredericksburg
Highland Park (town)
Woodway
Lumberton
Graham
Kirby
Bridge City
Pleasanton
Fort Bliss
Jasper
Hillsboro
Aransas Pass
Richland Hills
Fabens
Liberty
Lakeway
Hondo
Fort Stockton
Robinson
Perryton
Commerce
Cleveland
Leander
Midlothian
Crowley
Rockport
Hidalgo
Alamo Heights
Dalhart
Glenn Heights
Gonzales
Crystal City
Pearsall
Crockett
Lackland AFB
Highlands
River Oaks
Bacliff
Jersey Village
Windemere
Monahans
Homestead Meadows South
Navasota
Lampasas
Childress
Carthage
Greatwood
Marlin
West Livingston
Fresno
Eagle Mountain
Cuero
Mexia
Littlefield
Kaufman
Iowa Park
Silsbee
Hitchcock
Trophy Club (town)
Palmview South
Boerne
Lake Dallas
La Feria
Slaton
Gladewater
Cameron Park
Seminole
Edna
Timberwood Park
Breckenridge
Floresville
Kennedale
Everman
Alpine
Lacy-Lakeview
Atlanta
Yoakum
Granbury
Kermit
Dayton
Elgin
Center
Sinton
Carrizo Springs
Cameron
White Oak
Forney
Rio Bravo
Elsa
Brady
Diboll
Abram-Perezville
Rockdale
Livingston
Briar
Whitehouse
Bastrop
Kyle
Falfurrias
Sealy
Horizon City
Bowie
Decatur
Palacios
Gun Barrel City
Shady Hollow
Canutillo
Wake Village
Coleman
Tulia
Giddings
Windcrest
Rusk
Luling
Nurillo
Alton North
Mathis
Terrell Hills
Keene
Marble Falls
Meadows Place
Mila Doce
Palmhurst
Port Isabel
Zapata
Progreso
New Boston
Gilmer
San Diego
Burnet
Camp Swift
Lost Creek
McGregor
Fair Oaks Ranch
Hempstead
Hearne
Lakehills
Lake Worth
Kingsland
Teague
Mineola
Sanger
Jacksboro
Muleshoe
Joshua
Los Fresnos
Lago Vista
Hebbronville
Comanche
La Grange
Lopezville
Cockrell Hill
Prairie View
Alton
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