Cash Out Refinance

Guest 0.10 Dollars($)

If I am refinancing a 1st which is a purchase money mortgage, and rolling closing costs and prepaids into the loan; Is that considered an A6 in Texas? And if so, do those closing costs and prepaids fall under the 3% cap requirement?

Thank you!!!

ckalvesmaki · Posted: Fri Feb 01, 2008 11:35 am Post subject:

If you are not taking cash out.........then no it is not a tx A6 loan.......pre-paids and taxes or other costs associated with the loan are not considered cash out.

larry · Joined: 27 Jun 2007 Posts: 2598 349.41 Dollars($)

Hi Donns,

Welcome to the forum.

Are you doing a cash out refinance? A6 is a law related to cash out refinance.

If you want to know more about A6 law, check out this discussion at http://www.mortgagefit.com/texas/a6loan-law.html

How long have you taken the mortgage? how much equity have you gain so far?

jameshogg

Yes, purchase money loan is not a part of the A6 law, so whether it includes the closing costs and prepaids is not worth considering.

lisascherzer · Joined: 04 Jan 2008 Posts: 575 66.11 Dollars($)

It is not considered cash out because the seller is paying for closing costs and prepaids. It's all good.

jbarto65 · Joined: 04 Nov 2007 Posts: 522 8.43 Dollars($)

So, I guess you got your answer, A6 will only fall with the cash out option. goodluck.

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