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mksimon · Joined: 17 Mar 2010 Posts: 1 1.26 Dollars($)

If we have had a refinance with cash out previously on our home, is it true we cannot get a new refinance on the remaining balance only a home equity loan? We live in the state of Texas.

jameshogg · Posted: Wed Mar 17, 2010 9:04 pm Post subject:

Hi mksimon,

As far as I know, according to Texas A6 law, if you're pulling cash out of your home, regardless of lien position, it will be considered as a Texas A6 loan. So, if you have a first loan which you refinance and then go for cash out, it'll be considered as Texas A6 loan. On the other hand, if there is a 1st loan and you don't refinance but instead take out a second loan or a HELOC, it would also be considered as a Texas A6 loan. A home cannot have more than one Texas A6 loan on it at a time. As you've already refinanced your loan with a cash out, you won't be able to get a new refinance on the remaining balance of a home equity loan.

Take a look at Texas A6 law from the given page:
http://www.mortgagefit.com/texas/a6loan-law.html

Thanks

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If we have had a refinance with cash out in the past, is it true we can not get another refinance of the balance only a home equity loan is possible?