Your Guide to Affordable Financing in the Lone Star State
Mortgage Refinancing in Texas - Complete Guide
Why Refinance Your Mortgage?
Lower Your Monthly Payment: Reduce your interest rate to decrease monthly payments and free up cash flow for other priorities.
Cash-Out Refinancing: Access your home's equity for home improvements, debt consolidation, education, or investment opportunities.
Switch Loan Types: Move from an adjustable-rate to a fixed-rate mortgage for payment stability.
Loans Available in the following States:
AL, AK, CA, CO, FL, GA, ID, IL, IN, IA, KS, LA, MI, MN, MS, MO, MT, NE, NJ, NM, OH, OK, OR, PA, SC, TN, TX, VA, WA
Texas State-Specific Regulations
Texas Constitution Article XVI, Section 50(a)(6) - Home Equity Loan Restrictions:
- Maximum loan-to-value ratio of 80% for cash-out refinances
- 12-day rescission period for home equity loans (right to cancel)
- No prepayment penalties on home equity loans
General Refinancing Requirements
- Credit Score: Minimum 580-620 depending on loan type (higher scores get better rates)
- Debt-to-Income Ratio: Typically 43% or lower (varies by loan program)
- Loan-to-Value Ratio: Generally 80% or lower for best rates
- Employment History: 2 years stable employment preferred
- Property Appraisal: Required to determine current home value
- Income Documentation: W-2s, pay stubs, tax returns, bank statements
Types of Refinancing Loans Available
VA Refinancing Options
VA Interest Rate Reduction Refinance Loan (IRRRL)
- Also called VA Streamline Refinance
- No appraisal required in most cases
- No income or credit verification required
- Lower interest rate must result in lower payment
- Can refinance up to 100% of home value - Texas , limited to 80%
VA Cash-Out Refinance
- Access up to 100% of home's appraised value - Texas , limited to 80%
- Can refinance non-VA loans into VA loans
- Full income and credit documentation required
- Primary residence only
Conventional Refinancing
Rate and Term Refinance
- Lower interest rate or change loan term
- Up to 80% LTV for best rates (95% possible with PMI)
- No cash back to borrower (except small amounts for closing costs)
- Credit score minimum: 620
Cash-Out Refinance
- Access up to 80% of home's appraised value
- Higher credit score requirements (640-680+ for best rates)
- Higher interest rates than rate-and-term refinances
Jumbo Refinancing
- Loans above conforming limits
- Stricter credit and income requirements
- Higher down payment and reserve requirements
- Competitive rates for well-qualified borrowers
FHA Refinancing
FHA Streamline Refinance
- Current FHA borrowers only
- Minimal documentation required
- No appraisal required in many cases
- Must result in lower monthly payment
- Credit score minimum: 580
- Upfront mortgage insurance premium: 0.55%
FHA Cash-Out Refinance
- Access up to 80% of home's appraised value
- Full documentation required
- Credit score minimum: 580 (620+ for best rates)
- Mortgage insurance required for life of loan
- Primary residence only
DSCR (Debt Service Coverage Ratio) Refinancing
Investment Property Refinancing
- Based on property's rental income, not borrower's personal income
- DSCR of 1.0 or higher preferred (rental income covers mortgage payment)
- Credit score minimum: 640-680
- Down payment: 20-25% minimum
- No employment or income documentation required
- Interest rates typically 0.5-1.5% higher than conventional
Portfolio Lending Options
- Held by lender, not sold to government agencies
- Flexible underwriting guidelines
- Can close faster than traditional loans
- Higher interest rates but more approval flexibility
Frequently Asked Questions (FAQ)
General Refinancing Questions
Q: How much can I save by refinancing?
A: Savings depend on your current rate vs. new rate, loan amount, and how long you plan to stay in the home. A good rule of thumb is that refinancing makes sense if you can lower your rate by at least 0.5-0.75%. We'll provide a detailed cost-benefit analysis based on your specific situation.
Q: How long does the refinancing process take?
A: Typically 30-45 days from application to closing. VA IRRRL and FHA Streamline refinances can close faster (15-30 days) due to reduced documentation requirements.
Q: What are closing costs for refinancing?
A: Generally 2-5% of the loan amount, including appraisal, title insurance, origination fees, and other costs. Many costs can be rolled into the new loan amount.
Q: Should I refinance if I'm planning to move soon?
A: Generally no, unless you're doing a cash-out refinance for a specific purpose. Calculate your break-even point (closing costs ÷ monthly savings) to determine if refinancing makes sense based on your timeline.
Q: Can I roll closing costs into my refinance?
A: Yes, if you have sufficient equity. This is called a "no cash to close" refinance, though you'll pay interest on the closing costs over the loan term.
Ready to Refinance?
Why Choose Adam Bartling for Your Texas Refinance?
✅ Veteran Expertise: Retired Army veteran who understands military benefits and financial discipline
✅ No Upfront Credit Check: Get pre-qualified without impacting your credit score
✅ Educational First Approach: We'll explain all options so you make informed decisions
✅ Multiple Lender Network: Shop top lenders who compete for your business
✅ Video Consultations: Convenient virtual meetings that fit your schedule
✅ Dedicated Processing: Same team from application through closing
✅ Texas Licensed: Fully licensed and experienced with Texas regulations
Loan Range: $85K - $5M
Specializing In: VA, Conventional, FHA, USDA, and DSCR Refinancing
Don't let high interest rates cost you thousands. Contact Adam Bartling today for your free refinancing consultation and discover how much you could save.
