Wichita Falls Cash-Out Refinance

If you have been dreaming of updating your home but don’t have the cash to do it, a Wichita Falls Texas cash-out refinance might be your answer! This type of mortgage is ideal if you want to benefit from low-interest rates but prefer not to place all of your eggs in one basket by refinancing your entire mortgage. 

What Is a Wichita Falls Texas Cash-Out Refinance?

A Wichita Falls Texas cash-out refinance, aka Section 50(a)(6) of the Texas constitution, is a refinancing option taken out on a primary residence that allows the borrower or homeowners in the state to access the equity in their home and use it however they see fit. So if you own a home in Texas and have built up some equity in it, a cash-out refinance could allow you to borrow against that equity to get money for things like home improvements, debt consolidation, or investing. You may also use the money to pay for significant expenses like tuition or medical bills.

Despite their similarities, do not confuse the Texas cash-out refinance loan with a Home Equity Line of Credit (HELOC). A cash-out refinance involves getting a new mortgage to replace your old one, with its interest rate, monthly payment, and terms. Meanwhile, with a HELOC, if you already have a mortgage, the HELOC functions as a second loan that uses your home equity as collateral.