Texas Cash-Out Refinance: How Home Equity Rules Work

The short answer

Texas homeowners can tap equity with a cash-out refinance, but Texas has special consumer-protection rules for it that other states do not. Knowing them up front saves surprises.

What makes Texas different

• Equity limit. Texas cash-out refinances are generally limited to 80% of the home's value.
• Waiting period. There is a required notice period before you can close.
• Homestead protections. Your home is protected by Texas homestead rules, which is why equity loans follow special requirements.

Reasons people do it

Home improvements, paying off higher-interest debt, or funding a big goal. The right move depends on your current rate, your goals and the cost of the new loan, so we run the numbers both ways before you decide.

Is it right for you?

Trading a low existing rate for a higher one to pull cash can be expensive. Sometimes a second lien or a different strategy fits better. We look at the full picture.

Frequently asked questions

How much equity do I need?

You generally need enough equity to stay within the 80% limit after cashing out. We can estimate yours quickly.

Curious what your equity could do? Call (469) 414-5554.

By Kelly Welton, Mortgage Broker (NMLS #314183), Mohave Mortgage Texas Branch. Mohave Mortgage NMLS #1830581 · Texas Branch NMLS #2690682 · Equal Housing Opportunity. General information only, not legal or financial advice or a commitment to lend. Texas home equity rules are detailed, so confirm your specifics with your lender and attorney.