Refinance Your Texas Mortgage
Refinancing replaces your existing mortgage with a new loan, ideally with a lower rate, a shorter term, or access to equity you have built. Whether you are looking to reduce your monthly payment, pay your home off faster, or pull cash out for a renovation or debt consolidation, the starting point is always the same: run the actual numbers for your situation.
Texas has its own set of rules governing home equity lending that are written into the state constitution and differ meaningfully from the rules in other states. We will flag what applies to your situation early, not bury it in the fine print.
Is a Refinance loan right for you?
- Current Texas homeowners who purchased or last refinanced at a higher rate and want to see whether a rate-and-term refinance pencils out.
- Homeowners who want to convert from a 30-year to a 15-year loan, build equity faster, and pay less interest over the life of the loan.
- Homeowners who have built significant equity and want to access a portion of it through a cash-out refinance for home improvements, debt payoff, or other major expenses.
- VA borrowers eligible for an Interest Rate Reduction Refinance Loan (IRRRL), also called a VA Streamline, to lower their rate with reduced documentation.
How Refinance loans work in Texas
Texas homeowners have built substantial equity over the past several years as home values have risen across Dallas-Fort Worth, Houston, Austin, San Antonio, and the surrounding areas. That equity is a real asset, but accessing it through a cash-out refinance is governed by specific Texas constitutional rules (Article XVI, Section 50(a)(6), commonly called the (a)(6) rules) that are different from every other state.
Under Texas (a)(6) rules, a homeowner can borrow no more than 80% of the home's fair market value in a cash-out refinance. This is not a lender guideline, it is a constitutional limit, and it applies regardless of how much equity the home has. There is also a mandatory 12-day waiting period after application before the loan can close, and the proceeds must fund directly to the borrower, not to a third party. These rules exist to protect Texas homeowners, and we explain them plainly at the start of every cash-out conversation.
Rate-and-term refinances in Texas, where you are changing only your rate or term without taking cash out, are governed by standard conventional, FHA, or VA rules depending on your loan type. They do not trigger the (a)(6) constitutional framework. FHA Streamline and VA IRRRL refinances are available for eligible borrowers and offer a streamlined documentation path when you are staying within the same loan type.
The key question on any refinance is the break-even point: how many months until the savings from the new rate pay back the closing costs. For most Texas homeowners, closing costs on a refinance run roughly 2% to 3% of the loan amount, though the exact figure depends on loan size, county, and lender. If the break-even point extends past your likely timeline in the home, a refinance may not be worth it. We run that analysis before you apply, not after.
What the Refinance program includes
- Rate-and-term refinance: lower rate or shorter term
- Cash-out refinance up to 80% LTV (Texas (a)(6) constitutional limit)
- FHA Streamline refinance for existing FHA borrowers
- VA IRRRL for existing VA borrowers
- Conventional, FHA, VA, and jumbo refinance options
- Break-even analysis before you commit
- 12-day waiting period applies to Texas cash-out transactions
- Fixed and adjustable rate options
General parameters
These figures are illustrative starting points. Your actual loan terms depend on your credit profile, income, assets, property, and current market conditions.
- Cash-out LTV limit
- 80% of appraised value (Texas constitutional limit, Section 50(a)(6))
- Rate-and-term LTV
- Up to 95%+ depending on loan type (conventional, FHA, VA, jumbo)
- Waiting period (cash-out)
- 12 business days after application before closing (TX rule)
- Typical closing costs
- Approximately 2% to 3% of loan amount (your scenario may vary)
- Terms available
- 10, 15, 20, 30 years fixed; ARM options
Apex Capital Mortgage, LLC (NMLS #2583932) supports Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, income and asset verification, and property appraisal. Rates, terms, and programs are subject to change without notice and may vary by borrower and property. Not all applicants will qualify. Information on this site is for general educational purposes and does not constitute financial or legal advice.
Refinance loan questions
- What is the Texas (a)(6) cash-out rule?
- Article XVI, Section 50(a)(6) of the Texas Constitution limits cash-out refinances to 80% of the home's fair market value, regardless of how much equity exists. It also requires a 12-day waiting period after the borrower receives required disclosures before the loan can close. This is a constitutional protection for Texas homeowners, not a lender-imposed guideline. Rate-and-term refinances do not trigger these rules.
- How do I know if refinancing makes sense right now?
- The starting point is the break-even analysis: divide the closing costs by the monthly savings the new rate produces. If you plan to stay in the home long enough to recover the costs, refinancing makes sense. If you are within a few years of selling or paying off the home, the math often does not work in your favor. We run this calculation before you apply.
- Can I refinance from an FHA loan to a conventional loan in Texas?
- Yes. Converting from FHA to conventional is one of the most common refinance scenarios for Texas homeowners who have built equity above 20% and want to eliminate the FHA monthly mortgage insurance premium. It requires a new appraisal and full qualification under conventional guidelines. If your equity is strong, the savings from removing MIP can be significant.
- What is a VA IRRRL and who qualifies?
- The VA Interest Rate Reduction Refinance Loan (IRRRL), also called a VA Streamline, allows eligible veterans and service members to refinance an existing VA loan to a lower rate with reduced documentation. It does not require a new appraisal or Certificate of Eligibility verification in most cases. The new rate must be lower than the existing rate (with limited exceptions for ARM-to-fixed conversions). It is one of the fastest refinance paths available.
Ready to move forward?
Tell us about your situation and we will walk you through the numbers. No obligation, no jargon.
Ready to see your rate?
Get a real pre-approval from a Texas loan officer who picks up the phone, with no credit-pulling games and no surprises at closing.