If you're a Texas homeowner juggling credit card balances, personal loans, and medical bills, your home equity could be the key to simplifying your finances. A cash out refinance in Texas lets you replace your current mortgage with a larger loan and use the difference to pay off high-interest debt at a significantly lower rate.
Texas United Mortgage helps homeowners across the Lone Star State navigate this process with Texas-specific expertise and personalized guidance. In this article, you will find a comparison of the top cash-out refinance options for debt consolidation, along with decision criteria, tradeoffs, and borrower-fit guidance tailored to Texas regulations.
Choosing the right lender for a Texas cash-out refinance means more than just comparing rates. We looked at each option through the lens of a Texas homeowner who needs to consolidate high-interest debt while staying compliant with the state's unique Section 50(a)(6) regulations.
Texas United Mortgage is a locally rooted lender headquartered in Spring, Texas, with deep knowledge of the state's constitutional rules governing cash-out refinances. If you're carrying high-interest credit card debt or personal loans, the team at Texas United Mortgage works with you to structure a refinance loan that converts expensive balances into a single, lower-rate mortgage payment.
Because Texas law caps cash-out refinances at 80% LTV under Section 50(a)(6), you need a lender who understands exactly how much equity you can access. Texas United Mortgage provides free rate quotes and a personalized savings analysis so you can see the real numbers before committing.
Your assigned loan officer guides you from application through closing, helping you time the refinance around the mandatory waiting periods and ensuring full compliance with Texas regulations. That local, hands-on support is what sets Texas United Mortgage apart from national lenders that treat Texas as just another state.
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New American Funding originates cash-out refinance loans across all 50 states and accepts conventional applicants with credit scores as low as 580. The lender offers FHA, VA, and conventional cash-out refinance programs, which gives borrowers multiple pathways to tap their home equity for debt consolidation.
New American Funding also accepts non-traditional credit references, such as rent and utility payment histories, for applicants who lack a conventional credit profile. The lender provides bilingual loan officer support in English and Spanish, which can be helpful for Texas borrowers who prefer communicating in their primary language.
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Better Mortgage operates as an online lender with a digital application that does not charge origination fees on certain loan products. Borrowers can upload documents, track their application status, and complete parts of the closing process through the platform's web-based portal without scheduling in-person meetings.
The lender offers conventional and FHA cash-out refinance programs. Because the platform is entirely online, borrowers do not meet with a dedicated loan officer in person, which may suit applicants who prefer managing the process on their own schedule.
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Navy Federal Credit Union offers cash-out refinance loans to its members, which include active-duty military, veterans, and their immediate family members. The credit union provides conventional and VA cash-out refinance options, and all borrowers on the loan must become credit union members before the application can move forward.
Navy Federal operates 24/7 customer service, which can be helpful for active-duty borrowers stationed in different time zones or deployed overseas. The credit union does not publish minimum credit score requirements on its website, evaluating each application individually.
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Veterans United specializes in VA loans, including VA cash-out refinance for eligible veterans and active-duty military. The lender assigns a dedicated loan specialist to each borrower and offers a free credit counseling program for those who need to improve their scores before applying.
Veterans United operates primarily online with phone-based support and does not maintain physical branch locations. The lender does not offer conventional or FHA cash-out refinance programs, so non-VA-eligible borrowers would need to work with a different lender for their debt consolidation goals.
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| Lender | Texas 50(a)(6) Expertise | Minimum Credit Score | Assigned Loan Officer |
|---|---|---|---|
| Texas United Mortgage | ✓ | 560 | ✓ |
| New American Funding | ✗ | 580 | ✓ |
| Better Mortgage | ✗ | 620 | ✗ |
| Navy Federal Credit Union | ✗ | Not published | ✓ |
| Veterans United | ✗ | Not published | ✓ |
A Texas cash-out refinance replaces your existing mortgage with a new, larger loan. You receive the difference between the old balance and the new loan amount as a lump sum at closing. That cash can be used to pay off credit cards, personal loans, medical bills, or any other high-interest debt.
Texas regulates cash-out refinances under Article XVI, Section 50(a)(6) of the Texas Constitution. This means the new loan cannot exceed 80% of your home's appraised value. You must also wait at least 12 months after a previous cash-out refinance before completing another one.
For example, if your home is appraised at $400,000 and you owe $250,000, you could potentially borrow up to $320,000 (80% of $400,000) and receive up to $70,000 in cash to eliminate high-interest balances. Texas United Mortgage helps you run these numbers with a refinance calculator so you can see your potential savings before applying.
Here are Texas United Mortgage's posted rates as of October 29, 2026. Use them as a starting point when comparing a cash-out refinance against the rates on your credit cards and personal loans. Cash-out refinance rates can run higher than the purchase rates shown here, so request a custom quote for your exact numbers.
| Loan type | Rate | APR |
|---|---|---|
| Conventional 30-year fixed | 6.625% | 6.756% |
| Conventional 15-year fixed | 5.875% | 6.087% |
| FHA 30-year fixed | 6.250% | 7.116% |
| VA 30-year fixed | 6.250% | 6.388% |
Rates shown assume 1 point (1% of the loan amount) and the loan scenarios listed on our today's mortgage rates in Texas page. Rates may vary based on credit score, loan amount, and other factors, can only be guaranteed once locked with an application, and are subject to change without notice. This is not a commitment to lend.
A cash-out refinance typically carries a lower interest rate than a personal loan because your home serves as collateral. According to ICE Mortgage Technology's August 2026 Mortgage Monitor, American homeowners hold a record $18 trillion in mortgage equity, with 47.5 million borrowers sitting on $11.7 trillion in tappable equity. That equity represents an opportunity to swap high-rate debt for lower-rate mortgage debt.
Personal loans are unsecured, so they do not put your home at risk. However, average personal loan rates tend to run significantly higher than mortgage rates. If you have substantial equity and a stable income, a cash-out refinance may save you more in total interest over the life of the loan.
A personal loan may be the right fit if you need a smaller amount quickly or if you do not have enough home equity to qualify. Texas United Mortgage can help you compare both scenarios with a free savings analysis. Contact your loan officer to walk through the numbers.
Texas United Mortgage gives you a cash-out refinance experience built specifically for the rules and realities of the Texas market. National lenders process Texas loans using the same playbook they apply in every other state. Texas United Mortgage builds yours around Section 50(a)(6) compliance from day one, so there are no last-minute surprises at the closing table.
You work directly with a personal loan officer who understands current Texas mortgage rates, county-level property tax dynamics, and the specific waiting periods that apply to your situation. That level of local knowledge is something a large out-of-state lender cannot replicate.
If you are carrying high-interest debt and sitting on home equity, Texas United Mortgage provides the clarity, compliance expertise, and personal support to help you convert that equity into real financial relief. Contact Texas United Mortgage today for a free rate quote and personalized savings analysis.
Texas law caps cash-out refinance loans at 80% of your home's appraised market value under Section 50(a)(6) of the Texas Constitution. This means you must retain at least 20% equity in your home after the refinance. Texas United Mortgage helps you calculate your available equity before you apply so you know exactly how much cash you can access.
You must wait at least 12 months after closing one cash-out refinance before completing another in Texas. This waiting period is set by the Texas Constitution and cannot be waived by any lender. Texas United Mortgage tracks your timeline and lets you know when you become eligible again.
Yes. There are no restrictions on how you use the cash from a Texas cash-out refinance. Many borrowers use the funds to pay off credit cards, personal loans, medical bills, or other high-interest obligations. Texas United Mortgage helps you plan your debt payoff strategy so you get the most savings from your refinance.
Most lenders require a minimum credit score of 620 for a conventional cash-out refinance. Texas United Mortgage accepts credit scores as low as 560 for certain loan programs, which makes qualification possible for homeowners who may have been turned down elsewhere.
A cash-out refinance gives you a lump sum at a fixed interest rate, which makes budgeting predictable. A HELOC provides a revolving line of credit at a variable rate, which means your monthly payment could change. If you want to pay off a specific set of debts in one move, a cash-out refinance through Texas United Mortgage offers a fixed-rate, single-payment solution.