Home Equity Cashout
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
- Payoff credit cards
- Purchase a boat
- Start a business
- Pay income or property taxes
- Payoff high rate car loans
- Pay for a summer vacation
- Payoff an investment property
- Install a pool
- College Education
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
- With good credit, the cash out rates are very similar if not identical to rates for a standard rate / term refinance
- With most cash out loans, you will skip 2 months payments to start your loan
- Generally, most borrowers choose to roll their current loan into the new cash out loan, which keeps only one loan securing your property while still allowing you to receive your cash out. This is what Park Place Finance specializes in. However, in certain circumstances you can do a 2nd loan behind your current mortgage. Park Place rarely encourages these loans due to the rates associated with them.
- The maximum allowed total fees (including all 3rd party fees) associated with the loan is 3%. This is why Park Place Finance has $0 origination fees on cash out loans.
- Park Place can qualify a borrower’s debt to income ratio by eliminating payments on loans being paid off, which few lenders allow.
- Park Place Finance charges $0 Application Fee and 0 Points on all cash out loans, and there is generally no out of pocket expense except for an appraisal.
- Park Place Finance, LLC focuses on providing the lowest rates to highly qualified borrowers through a very low loss ratio. For this reason, Park Place requires a 680 minimum credit score for cash out loans
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
To discuss options further, please contact a loan officer today at 512-505-6267
Did You Know
- $0 Application Fee and $0 closing Cost Options
- Pre-Approvals in 10 minutes over the phone
- Home Mortgage Cash Out / Equity Loans up to 80% of Home Value
- Jumbo Loans up to 90% of Value
- FHA Lending with as low as 640 Credit Score
- All Loan Officers are NMLS licensed and located in Austin
- Purchase Loans in 14 Days
- Our Average Lender can close your Loan in 21 Days
- We can search up to 34 local and national lenders within in just a few minutes
- We can meet you locally at our office conveniently located in Downtown Austin
- Cash out Rates are very similar if not identical to a rate / term refinance