Refinance
Cash-out refinance in Texas
A cash-out refinance replaces your mortgage with a new, larger loan, and you get the difference in cash. Texas has its own rules for a cash-out refinance on a homestead.
How a cash-out refinance works
You take out a new loan for more than you owe now. The new loan pays off the old one, and you get the difference in cash at closing. Then you make payments on the new, larger loan.
What people use the cash for
- Home improvements
- Debt consolidation
- Major expenses
- Investment property down payments
Texas homestead rules for a cash-out refinance
Texas has specific constitutional and statutory rules for home-equity loans and cash-out refinances on homestead property, including limits on loan-to-value and fees. This is general information, not legal advice — flag for compliance review.
Texas homestead considerations, with the state's own sources