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#128988 - 11/06/03 06:22 PM Home Equity / Cash Out Refi
Dallas Offline
New Poster
Dallas
Joined: Sep 2002
Posts: 13
Dallas, Texas
Couple of questions for you Texas Experts:

1. What is difference between Home Equity and cash out refinance?

2. If a "cash out refi" is not the same as HE, then is it okay to fund an HE loan within one year of the "cash out refi"?

Thank you for your help. I've look at all the resouces TBA, IBAT, TX Finance Comm. etc. and couldn't find anything that addresses these issues.

Thanks again!

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#128989 - 11/06/03 08:49 PM Re: Home Equity / Cash Out Refi
zaibatsu Offline
Power Poster
Joined: Jun 2001
Posts: 6,153
A home equity loan is not necessarily a refinance of anything, but a cash out refinance must be a home equity loan. So, no you can't fund a home equity loan within a year of a cash out refinance.

The only exception is if the cash-out part of the refinance is to pay reasonable costs necessary to refinance such debt for a purpose described by Constitution, Article XVI, Section 50(a)(2) [ad valorem taxes], (a)(3) [an owelty partition], or (a)(5) [home improvement].

_________________________
Better a patient man than a warrior, a man who controls his temper than one who takes a city

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#128990 - 11/06/03 10:27 PM Re: Home Equity / Cash Out Refi
Anonymous
Unregistered

Unless the property is not the borrowers homestead. You can cash out refi on 2nd homes and investment property.

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#128991 - 11/07/03 01:34 PM Re: Home Equity / Cash Out Refi
zaibatsu Offline
Power Poster
Joined: Jun 2001
Posts: 6,153
Yes, this all depends on this being the borrower's homestead. If it is not their homestead, Article XVI, Section 50 of the Texas Constitution does not apply.
_________________________
Better a patient man than a warrior, a man who controls his temper than one who takes a city

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