Rate Term Refinance Texas

jjulian · Joined: 01 Apr 2008 Posts: 2 1.57 Dollars($)

I have a borrower on an adjustable coming due (adjusting upwards) and need to rate/term refi. They previously had a cash-out refinance and now sit at 86% ltv with just a 1st mortgage. I know once a cash out ~ always a cash out, but can the borrower rate/term at 86% ltv, or are they stuck in an adjusting mortgage?

atulagarwal · Posted: Tue Apr 01, 2008 11:34 am Post subject:

Interesting situation, specially since you are from Texas. Best Thing I can recommend is go to a reputable local lender and try to get a FHA refinance on your property before its too late. I do know there are a lot of restrictions on Cash out refinances in Texas but maybe you can get a local Loan officer to help you get into a FHA Mortgage and curtail the increase in Rate as well as Negative Ammortizarion

jjulian · Joined: 01 Apr 2008 Posts: 2 1.57 Dollars($)

Actually I'm looking more for an answer on the law regarding Texas Rate Term refinance and whether someone with a cash out in the past can refi rate term over 80% ltv

chrisburns · Posted: Tue Apr 01, 2008 3:25 pm Post subject:

TExas has some very strange laws about this. I know that you can't refinance a HELOC.

If you have a HELOC in texas it must always remain a HELOC.

You can rate & term refi to 100% LTV in texas but only go to 80% LTV on cash out.

I'm not an expert on texas law. You may want to contact the finance agency that governs the law to get claification from them.

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