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Very helpful information about The Risks of Cash-Out Refinances. Refinance Rules in Texas. Refinancing a home loan is straightforward process. Providing there is enough equity in a home, a new home loan pays off an existing one and a borrower begins paying on a the new mortgage.
As the concept is the same across the United States, all states have rules each lender and borrower must follow on refinance transactions. In Texas, the rules differ slightly from those enforced in other states. Cash-out Refinance Rules. In Texas, refinance transactions where borrowers wish to receive cash are limited to 80 percent loan-to-value (LTV).