More on Texas A6

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It seems to me it is really a matter of interpretation as Section 50(a)(6), Article XVI of the constitution, concerning extensions of credit actually speaks to a 12 day disclosure rule, and having only one loan at a time on the same property. You really only have two loans on the same property during that 12 days waiting period, and the second isn't really a loan until it's approved, at which time it will pay off the first loan, so you're left with one loan.

I truly don't understand why Texas legislators would make a law that is interpreted to say that I cannot refinance my own property as often as I want, so long as I can afford it. They did nothing to keep the idiots that went out and got low-interest, ARMs they couldn't afford, a few years ago, and now are talking about bailing them out. Yet they will not let me refi my loan, at a currently available rate that cuts my payments by $150/mo AND lets me pay it off 10 years earlier, just because I refinanced my ARM (which I could afford) into a Fixed 8 months ago. Is there a loop-hole or way to get around this obviously stupid law that doesn't benefit the homeowner in any way? My bank is willing just doesn't know what they can do. It would be with the same bank, on the same property, just a better rate, so it isn't really refinancing, as much as modifying, though that is how it would be done.

Any advice on how to get this done while the rates are still low?

Niicss · Joined: 03 Oct 2005 Posts: 662 94.17 Dollars($)

Welcome Ann,

I have replied your query at http://www.mortgagefit.com/texas/a6loan-law.html#48756

You can have a look at it.

Let me know if you have any more queries.

Guest 0.10 Dollars($)

Yeah it looks like a loan modification only because you want to change the rate only. But the point is, are you having problems paying off the loan? Mostly when you are in hardship and unable to afford payments, a loan modification may be granted.

Now I was just checking the Texas laws and as it says, a new loan secured by the same property will not close until 1 year have passed till the closing of the existing loan secured by the same property. That's the reason perhaps you aren't able to refinance now. So, can you wait for 4 months so that the 1 year period is complete? otherwise you'll have to send a hardship letter to the lender stating you cannot repay the loan and it will be great if he can modify the loan.

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