Posted on: 01st Feb, 2008 09:38 am
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!!!
Thank you!!!
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.
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?
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?
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.
It is not considered cash out because the seller is paying for closing costs and prepaids. It's all good.
So, I guess you got your answer, A6 will only fall with the cash out option. goodluck.