Posted on: 15th Jan, 2009 06:53 am
hi all,
i'm trying to refinance my home in texas, and my lender has blindsided me with something called "texas cash-out" laws.
-
i have the original first mortgage, + a home eq loan.
i want to roll them together as one mortgage.
-
why is that a cash out?
will the resulting mortgage be subject to these rules if i refinance in the future?
what exactly is included in the "3% limit"?
where can i read these rules i am being screwed by?
thanks in advance!
mike
i'm trying to refinance my home in texas, and my lender has blindsided me with something called "texas cash-out" laws.
-
i have the original first mortgage, + a home eq loan.
i want to roll them together as one mortgage.
-
why is that a cash out?
will the resulting mortgage be subject to these rules if i refinance in the future?
what exactly is included in the "3% limit"?
where can i read these rules i am being screwed by?
thanks in advance!
mike
in cash out refinance, the new mortgage amount is greater than the existing mortgage amount. the main purpose of a cash-out refinance is to extract the equity from the borrower's home. a cash-out refinance is a substitute to a home equity loan.
the fees which the borrower pays for the texas cash-out refinance are limited to 3% of the loan amount. within this 3% fees, the origination and lender charges, third party fees like credit report fee, appraisal fee, as well as title insurance premiums are all included.
to know more about texas a6 laws, check out the following link:
http://www.mortgagefit.com/texas/a6loan-law.html#23849
thanks.
the fees which the borrower pays for the texas cash-out refinance are limited to 3% of the loan amount. within this 3% fees, the origination and lender charges, third party fees like credit report fee, appraisal fee, as well as title insurance premiums are all included.
to know more about texas a6 laws, check out the following link:
http://www.mortgagefit.com/texas/a6loan-law.html#23849
thanks.
Can a lender charge a higher rate and receive premium on the back end without running up against the 3% fee limit?
Hi yourrealtorjoe,
It is not legal for a lender to charge a higher rate and receive premium in the back end. It is illegal and the lender must be scamming the borrowers if he is doing so.
It is not legal for a lender to charge a higher rate and receive premium in the back end. It is illegal and the lender must be scamming the borrowers if he is doing so.