U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 02-19-2008, 04:18 PM
 
26 posts, read 112,148 times
Reputation: 11

Advertisements

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
Rate this post positively Reply With Quote Quick reply to this message

 
Old 02-19-2008, 06:45 PM
 
69,366 posts, read 61,723,590 times
Reputation: 9382
Quote:
Originally Posted by brussell View Post
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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-19-2008, 11:52 PM
 
Location: Warrior Country
4,574 posts, read 6,366,745 times
Reputation: 3975
Quote:
Originally Posted by brussell View Post
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%)
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-20-2008, 04:10 PM
 
Location: Oz
2,238 posts, read 9,499,896 times
Reputation: 1388
Do...not...put...unsecured...debt...onto...your... home!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2008, 11:10 PM
 
26 posts, read 112,148 times
Reputation: 11
Default 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
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2008, 11:41 PM
 
Location: Warrior Country
4,574 posts, read 6,366,745 times
Reputation: 3975
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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-22-2008, 04:34 PM
 
Location: Great State of Texas
86,052 posts, read 81,216,377 times
Reputation: 27707
Texas put those rules in place for a reason.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-22-2008, 04:42 PM
 
Location: The Big D
14,862 posts, read 40,904,206 times
Reputation: 5787
Quote:
Originally Posted by HappyTexan View Post
Texas put those rules in place for a reason.
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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-22-2008, 06:56 PM
 
Location: Warrior Country
4,574 posts, read 6,366,745 times
Reputation: 3975
Quote:
Originally Posted by momof2dfw View Post
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.
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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-22-2008, 07:18 PM
 
69,366 posts, read 61,723,590 times
Reputation: 9382
Quote:
Originally Posted by brussell View Post
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..
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6.

© 2005-2023, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top