Posted on: 11th Aug, 2010 07:20 am
several years ago i refinanced my mortgage loan into a home equity loan when the rates were lower for that type of loan and no closing costs were applied. now mortgage loans are at such a great rate that i am wondering if i can refinance back into a traditional mortgage loan. i have been told that is not possible by federal law. is this true and if so, why?
I'm going to look into to this but, if you're not taking equity out and just satisfying that lien; I believe you can.
It absolutely is not federal law. Texas does have some pretty strict rules regarding cash out refinances though. Would think as long as you can prove that the reason you took out a HELOC was just personal preference and not cash out it would be doable.
