Start with the reason
A refinance is worth doing when it solves something. The common reasons:
- Lower the cost of borrowing or shorten the term
- Move from an adjustable rate to a fixed one
- Remove mortgage insurance — often FHA to conventional
- Take cash out for a renovation, debt payoff or investment
- Exit a temporary loan — a bridge, non-QM or construction loan — into long-term financing
- Remove a borrower after a divorce or change in circumstances
Then I work out the break-even: how long it takes for what you gain to cover what the refinance costs. If it does not pencil, I will say so.
The Texas cash-out rule
In Texas, the moment a homestead refinance puts cash in your hand, the Texas Constitution’s home equity rules apply — the 80 percent combined limit, the 12-day wait, closing at a lender, attorney or title office, and the rest. The home equity page covers each one. A refinance with no new cash follows simpler rules.
Streamlines for VA and FHA
If you already have a VA loan, the VA’s Interest Rate Reduction Refinance Loan (IRRRL) is designed to be a simpler path. FHA borrowers may have an FHA streamline option. Both have program rules the agencies set; I check your eligibility before we go further. VA borrowers who want cash out can look at the VA cash-out refinance — see VA loans in Texas.
What I will not do on this page
Quote rates, payments or savings. Those depend on your loan, your home and the day. Applications, pricing and disclosures are handled by All Western Mortgage.