There was recently an amendment passed to the Texas Home Equity Laws. (also called A6 loans)
Previously once you put a Texas Cash Out Loan on your home any subsequent loan you get on your home would also have to be classified as a Texas Cash Out Loan. …which limits your loan options for refinacing.
This has now changed.
You can now refinance a Home Equity loan into a non Home Equity loan provided these conditions are met…
1) The refinanced loan is signed at least a year after the original home equity loan was signed.
2) The refinanced loan cannot provide any additional money to the borrower other than to cover the costs to do the refinancing.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett