Before 1/1/2018, Texas home equity (or Texas 50 a (6) ) loan has a rule as once cash out, always cash out. This has been changed in year 2018. Now if you have a Texas cash out loan and would like to refinance just for rate/term purpose, loan can be changed to non-Texas-cash-out. Usually a non-cash-out refinance should get a better rate.
The new rules also remove the restriction on property with Agricultural use as homestead, so agricultural homestead can get cash out now.
If you’d like to know more about this topic, please contact us.
