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Texas Refinancing @ $110,000

Posted on: 13th Apr, 2008 09:20 am
does anyone know if its true in texas you cannot refinance residential property under $110,000?
Hi bruffin,

Welcome to the forum.

I have not ever heard anything like this. But you should shop around for lenders and I hope you will be able to refinance.

BTW can you please let us know -
1. How much do you owe?
2. How long have you taken the mortgage?
3. Your credit history
4. Your employment history etc so that we can give you a better suggestion.

Best of luck,
Larry
Posted on: 13th Apr, 2008 11:10 pm
bruffin,

There isn't any law that you can't refinance property valued $110,000. but yes, if you're doing a cash-ouyt refinance there, you won't be able to take out more than 80% of your home value as the new cash out loan. This is applicable as per the Texas A6 Law. Please check out the rest of the details from a previous discussion on Texas A6 Refinance Law .

Take Care
Posted on: 14th Apr, 2008 04:06 am
Here may be the issue. If you trying to get a cash out, Texas (a)6, some people will not do them for smaller loan amount due to the state regulation that closing costs can not exceed 3% of the loan amount. Whneyou refinance in Texas, the lender will require a new Title Policy which will cost you around 1% of the loan amount, then whne you add the appraisal, prigination fee, procesing, Underwriting, Title endorsements and other fee it can exceed the 3%. The amount that exceeds the 3% has to be absorbed by the broker and none of us are in the business to lose money. It's not that it's impossible to do, you just need someone that knows what they are doing.
Posted on: 14th Apr, 2008 07:37 am
John,

It's quite likely that the lender must have felt the $110,000 is too less compared to the loan amount he has been originating and that's the reason he has refused to offer the refinance loan. He must be thinking whether it's in his gain to spend a good cash amount for a loan worth $110,000 if the closing costs exceed 3%.

Good luck
Posted on: 15th Apr, 2008 04:09 am
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