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How To Refinance A Home Mortgage In Houston, Texas

March 14, 2022 | By Texas United Mortgage

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If you are a homeowner in Houston, Texas, and you are looking to refinance your mortgage, you have come to the right place! In this blog post, we have gathered everything you need to know about refinancing your home mortgage in Houston. We will provide information on how to get started, what the process entails, and what to expect from the entire refinancing experience. Plus, we will point out the specifics you need to know that only apply to refinancing a home mortgage in Texas. 

So whether you are looking for a lower interest rate or want to shorten your loan term, read on for tips on how to refinance a home mortgage in Houston!

What is a Home Refi?

The first step in refinancing your home mortgage is understanding what a refinance is. In simple terms, refinancing is the process of taking out a new loan to pay off an existing one. This new loan will have different terms than your original mortgage, which could include a lower interest rate, a shorter loan term, or both. 

A general rule of thumb is that you should have at least 20 percent equity in your home before you decide to refinance. Especially if you want to get rid of private mortgage insurance on the loan. This number is also the amount of equity you'll need if you want to do a cash-out refinance in Texas, too.

Why Should I Refinance a Home Mortgage?

There are a variety of reasons why homeowners choose to refinance their mortgages. Some people do it to get a lower monthly payment either by getting a lower rate or extending their mortgage terms. Alternatively, others might refinance to a shorter-term to pay off their homes sooner. Another refinancing option is a cash-out refinance, where you take out a new, larger loan, s you can withdraw cash based on the equity of your home.

No matter what your reason is for wanting to refinance, the process is relatively similar across the board.

What is a Texas 50(s)(4) Loan?

A Texas 50(s)(f) loan is a refinance mortgage loan available to homeowners in the state of Texas. So if you’re wanting to refinance a home mortgage in Houston, this pertains to you!

This type of loan is available to those who have an existing home mortgage that they would like to refinance. The 50(s)(f) loan allows borrowers to refinance their mortgage at a lower interest rate, which can save them money each month on their payments. 

In addition, this type of loan may also allow borrowers to extend the term of their loan, which can make it more affordable in the long run.

Are Home Mortgage Refinance Laws Different in Texas?

The laws governing home mortgage refi loans in the state of Texas are similar to those in other states. However, there are some unique aspects of refinancing a home mortgage in Texas that borrowers should be aware of. 

For example, Texas law requires that all refinance loan documents be filed with the county clerk's office in the county where the property is located. In addition, Texas law prohibits lenders from charging certain fees, such as application or origination fees, to borrowers who refinance their home mortgage.

As you can see, there are some important things to know about refinancing your home mortgage in Houston, Texas. That’s why it’s important to work with a reputable, local lender in Houston, Texas who will understand all applicable rules and regulations. 

How to Get Started with Refinancing Your Mortgage

Now that you know what refinancing is and why people do it, let's talk about how to get started with the process. The first step is to contact an experienced lender in Houston, Texas to discuss your refinance options. Lenders will be able to tell you if you are eligible for a refinance and what type of loan would be best for your situation.

After you have spoken with a lender, they will give you a refinance application packet to fill out (typically you can complete this online). This packet will include information on your current mortgage, as well as new terms for the refinance loan. Be sure to gather all the supporting documents that the lender asks for, such as pay stubs, bank statements, and tax returns.

Once you have filled out the application and gathered all of your supporting documents, submit them to the lender and wait for a decision. The lender will then run a credit check and order a property appraisal to determine the value of your home. You will typically need a credit score of at least 580 to refinance a home mortgage. 

If everything goes well, you should receive a loan estimate from the lender within three days. This document will outline the terms of your refinance loan, as well as any associated fees. Once you have reviewed and accepted the terms of the loan, you will be ready to close on your refinance!

What to Expect at Closing

The closing is when you sign all of the paperwork for your refinance loan and officially become its owner. This process usually takes place at a title company or attorney's office, and it can take anywhere from 30 minutes to an hour to complete.

At closing, you will first sign the loan documents. These documents include the promissory note, which is a legally binding document that states you will repay the loan, as well as the mortgage or deed of trust. You will also have to pay any closing costs associated with your refinance at this time.

Once you have signed all of the necessary paperwork and paid any closing costs, your refinance will be complete! 

How to Find a Great Lender for Your Home Mortgage Refinance in Houston

Now that you know all about refinancing your home mortgage in Houston, it's time to find a great lender to work with. If you are looking for a refinance loan that offers the lowest interest rate possible, the team at Texas United Mortgage is on top of the game. 

We use our local Houston expertise to help you sort through the financial details and ensure that you are completely at ease throughout. Our financing process is on time, trustworthy, and dependable. We’ll ensure you close on time and we’ll be transparent with our communication throughout the process.

Takeaways on How to Refinance a Home Mortgage in Houston

We hope this blog post has been helpful in explaining how to refinance your home mortgage in Houston, Texas. If you have any further questions about the process, we encourage you to speak with a lender on our top-rated mortgage team. They will be able to provide you with personalized advice and answer any specific questions you may have. 


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