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Put your equity to work — carefullyRefinance in San Antonio: honest math, and Texas rules done right.
A refinance is a math problem wrapped in paperwork. The math half is simple and I'll show it to you straight — costs, savings, breakeven. The paperwork half is where Texas is genuinely different: our constitution regulates homestead cash-out loans harder than any state in the country.
No SSN. No credit pull. Alejandra Glass, NMLS #1008649.
Three reasons people refinance — and the test each must pass
- Rate-and-term: cut the rate or reshape the term. Test: savings must clear closing costs before your realistic exit from the home.
- Dropping mortgage insurance: if equity growth has you past 20%, restructuring out of PMI — or out of FHA's lifetime premium into a conventional loan — can save real money monthly. Test: the new rate can't eat the insurance savings.
- Cash-out: convert equity to cash for renovation, consolidation or investment. Test: the blended cost of the new, larger loan must beat your alternatives — and in Texas, the loan must be structured under the homestead rules below.
Texas cash-out refinance rules: what 50(a)(6) means for you
Texas Section 50(a)(6) — the constitutional provision governing cash-out on your primary residence — is why a Texas homestead cash-out doesn't work like the loans you see described on national websites:
- 80% combined loan-to-value cap. All borrowing against the homestead, combined, can't exceed 80% of its value — you must leave 20% equity in the home. No exceptions.
- Capped closing fees. The constitution caps certain fees on these loans as a percentage of the loan amount — structural consumer protection most states don't have.
- A mandatory cooling-off period. A required waiting period runs between the disclosure you sign at application and the day you can close. Plan your timeline around it.
- One home equity loan per 12 months on the same homestead, and refinancing an existing 50(a)(6) loan follows its own rules — including a conditional path back to a standard loan.
Investment properties play by different rules
The homestead protections don't apply to rentals — cash-out on an investment property follows normal underwriting, or skips personal income documentation entirely with a DSCR loan that qualifies on the property's rent. For self-employed owners, bank statement loans can also fund a cash-out when tax returns understate real income.
Run your numbers first
Start with the mortgage calculators to frame the payment, then check your refinance options — two minutes, no SSN, no credit pull. I'll give you the breakeven in writing and a straight answer on whether this refinance earns its costs.
Refinance & Texas Cash-Out — straight answers
When does refinancing actually make sense?
When the math clears: total cost of the new loan versus what it saves, divided into a breakeven month. If you'll hold the home past breakeven, it works; if not, it doesn't. I run that calculation honestly and tell you plainly when staying put wins — a refinance that only benefits the lender isn't one I'll pitch.
What are the Texas cash-out refinance rules?
Texas regulates cash-out refinances on your homestead through Section 50(a)(6) of the state constitution: combined borrowing is capped at 80% of the home's value, certain closing fees are capped as a percentage of the loan, and there's a mandatory waiting period between application disclosures and closing. It's more protective than any other state — and it changes how these loans are structured, which is exactly what I walk clients through.
Can I take cash out of an investment property in Texas?
Yes — and here's the part that surprises people: the 50(a)(6) homestead restrictions don't apply to investment properties. Cash-out on a rental follows normal national rules (or DSCR structures that skip income documentation entirely). Equity in one rental funding the next purchase is the most common investor play I see.
What's the difference between rate-and-term and cash-out?
Rate-and-term replaces your loan to improve the rate, the term, or to drop mortgage insurance — no meaningful cash back. Cash-out replaces it with a larger loan and hands you the difference in equity. In Texas the legal distinction matters more than elsewhere, because homestead cash-out loans carry the 50(a)(6) rules and rate-and-term refinances generally don't.
Once I do a Texas cash-out, am I stuck with those rules forever?
Historically 'once a home equity loan, always a home equity loan' was the rule. Texas has since created a path to refinance a 50(a)(6) loan back into a standard loan after enough time and under specific conditions. Whether your loan qualifies for that conversion is file-specific — bring me the details and I'll map it.
Let’s see what you qualify for.
Two minutes, no SSN, no credit pull — and I review every one personally.