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02-19-2008, 04:18 PM
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26 posts, read 112,148 times
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I hope someone can help me.
We are going to Refinance on our Dallas Texas home. We have a home equity loan (last refi was way over 12 months ago) and a home improvement loan. I know texas has some crazy  (surpise!) home equity refi laws...80% of value..yadayada
MUST we roll in the home improvement loan? or can i roll in my Credit Card debt and my car debt into the refi (as long as it is not over 80% of value) and then continue paying my home improvment loan by itself...
longest sentence ever...sorry about that! 
thanks
brussell |
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02-19-2008, 06:45 PM
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69,366 posts, read 61,723,590 times
Reputation: 9382
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Quote:
Originally Posted by brussell
I hope someone can help me.
We are going to Refinance on our Dallas Texas home. We have a home equity loan (last refi was way over 12 months ago) and a home improvement loan. I know texas has some crazy (surpise!) home equity refi laws...80% of value..yadayada
MUST we roll in the home improvement loan? or can i roll in my Credit Card debt and my car debt into the refi (as long as it is not over 80% of value) and then continue paying my home improvment loan by itself...
longest sentence ever...sorry about that!
thanks
brussell |
As far as I know, I havent heard that any location had "laws" limiting the amount you can borrow but, as for "must you", no, you dont "have" to... by law roll over the home improvement loan, unless the loan company insists as a matter of doing the loan. As for can you roll over your credit card debt and car debt.. sure you can, provided you can find a bank to do it. |
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02-19-2008, 11:52 PM
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Location: Warrior Country
4,574 posts, read 6,366,745 times
Reputation: 3975
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Quote:
Originally Posted by brussell
I hope someone can help me.
We are going to Refinance on our Dallas Texas home. We have a home equity loan (last refi was way over 12 months ago) and a home improvement loan. I know texas has some crazy (surpise!) home equity refi laws...80% of value..yadayada
MUST we roll in the home improvement loan? or can i roll in my Credit Card debt and my car debt into the refi (as long as it is not over 80% of value) and then continue paying my home improvment loan by itself...
longest sentence ever...sorry about that!
thanks
brussell |
Yes, Texas Home Equity loans are unique.
- The total amount of loans with liens on the home can't exceed 80% of the appraised value. So the new loan (consolidating the first mortgage & cash to pay off "stuff" AND the home improvement "second" must not exceed the 80%.
- Whether the home improvement loan can remain depends on the NEW lender AND the lender holding the second. The new lender may or may not allow a "second" to remain. But if they do, i assure you they will require the "second lender" to subordinate their position.
- The second lender may or may not be willing to do this.
I've seen it done (especially if the credit is top drawer & the conbined LTV is well under the 80%). But I've also seen occasions where the first AND/OR second lenders may balk at this....& the borrower ends up just getting a high enough loan to pay off everyone (as long as it's under the 80%) |
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02-20-2008, 04:10 PM
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Location: Oz
2,238 posts, read 9,499,896 times
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Do...not...put...unsecured...debt...onto...your... home!
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02-21-2008, 11:10 PM
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26 posts, read 112,148 times
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unsecured debt is not ok to to roll into home debt?
 i'm assuming this means credit card debt? why? i have heard this is an ok process, please explain...thanks |
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02-21-2008, 11:41 PM
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Location: Warrior Country
4,574 posts, read 6,366,745 times
Reputation: 3975
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I think Roamin is stating an opinion.
The fact is, if you are under the 80% LTV threshhold (in Texas) you can receive cash out to pay off consumer debt. It's your money.
See my post above.
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02-22-2008, 04:34 PM
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Location: Great State of Texas
86,052 posts, read 81,216,377 times
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Texas put those rules in place for a reason.
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02-22-2008, 04:42 PM
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Location: The Big D
14,862 posts, read 40,904,206 times
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Quote:
Originally Posted by HappyTexan
Texas put those rules in place for a reason.
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Yep. Up until a few years ago homeowners in Texas could not get a home equity loan. We believe that a mans home is his castle and wanted to protect it. We had MUCH less foreclosures back then as people could not cash out on their equity and use it for other purposes and put their "shelter" at risk. Never really bothered me that we couldn't. |
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02-22-2008, 06:56 PM
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Location: Warrior Country
4,574 posts, read 6,366,745 times
Reputation: 3975
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Quote:
Originally Posted by momof2dfw
Yep. Up until a few years ago homeowners in Texas could not get a home equity loan. We believe that a mans home is his castle and wanted to protect it. We had MUCH less foreclosures back then as people could not cash out on their equity and use it for other purposes and put their "shelter" at risk. Never really bothered me that we couldn't.
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Correct...Texans weren't allowed to tap into their home equity until about 10 years ago. Now they can....but only up to 80% LTV.
Fwiw, two years I "tapped into" my home equity for 40K to convert our garage into a 800 sq. ft. master suite & also to upgrade our 50 y/o home which is located in a very nice (desirable) neighborhood. Took about a year. The 40K upgrade was worth an extra 70-80K in profit when i sold.
Next year (or the year after) i might "tap into" my equity to put 20-30% down on our retirement home (that we would move into in 3-5 years). I'm glad I'm able to use my asset (castle...whatever) to strategically plan my life's goals.
Regarding "MUCH less forclosures" prior to folks being able to tap into home equities. This isn't accurate. Florida, Ohio & Nevada are experiencing what Texans experienced in the mid 80s. Which was caused by a number of factors. I have no quarrel with the 80% cap. If such a cap existed elsewhere there would be fewer forclosures i believe - i suspect we all agree on this.
But imo, a bigger reason for forclosures now is that folks are buying homes with 100% financing. They have no skin in the game. When their property drops 30K-100K, they hand the keys to the bank.
Thread Starter - it is legal for you to do a loan in Texas & get cash out. Certain criteria would need to be met, including being under the 80% LTV threshold. Good luck. |
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02-22-2008, 07:18 PM
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69,366 posts, read 61,723,590 times
Reputation: 9382
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Quote:
Originally Posted by brussell
i'm assuming this means credit card debt? why? i have heard this is an ok process, please explain...thanks |
The reason you dont put unsecured debt onto a home is.
Under the current situation, (i.e. credit card debt) if you cant pay.. They cant attach anything, there is nothing securing the debt.
If you put the unsecured debt under the home, and then cant pay.. You've just lost your home.
There are various arguments for putting it on the home, such as tax write offs, lower interest rates etc but your house isnt something that one should gamble with or risk by adding on increased debt un-necessarily..
Last edited by pghquest; 02-22-2008 at 07:31 PM..
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