As the saying goes here in Texas, “Once a cash out, always a cash out.”  What that means to us in the mortgage business, is that once a Texas homeowner takes out a home equity loan or line of credit on his or her primary residence, the only loan they can get in future on that property is going to be a Texas cash out (A-6) loan.  A standard “rate and term” refi is no longer an option and you are limited to refinancing every 12 months.  HOWEVER, there is ...

What’s the difference between a reverse mortgage and a bank home equity loan?

With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home, sales price or FHA’s mortgage limits, ...