Posted on: 01st Apr, 2008 11:11 am
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?
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
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
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.
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.
I have a client that has never taken cash out and I want to know what the maxium LTV can be for a rate and term in Texas..
Hi
As fas as I'm aware of, in Texas one can do a cash-out refinance only upto 80% LTV. This is as per the Texas A6 laws pertaining to cash-out refinance.
As fas as I'm aware of, in Texas one can do a cash-out refinance only upto 80% LTV. This is as per the Texas A6 laws pertaining to cash-out refinance.