Dallas Mortgage Refinance: Texas Cash Out Refinance

Dallas Mortgage Refinance: Texas Cash Out Refinance

We are celebrating our 5th year in the mortgage business and over time we have found that there is perhaps no better financial planning tool than a cash out refinance.  Cash out refinancing gives many people what they really need…leverage.   Having money in the bank after the bills should be priority #1 for most Texans.  All thtalk about what you should do with your money…but my position is you first have to have the money. Right?

 So having money left over after the bills is the first step to growing wealth.  I mean, who cares if you get the sexiest mortgage rate—if you don’t have any money left over in your checking account after your bills?

And this is why people refinance—to lower their bills.  For most people refinancing means from a 6% rate to a 4.5% rate…they save a little money.  We make a little money.  Win/win.  We all smile.  But at Mylendingplace.com we want to offer the home loans that have the greatest impact to people! And sometimes, ironically, this means borrowing MORE, not less. 

 I know this sounds backwards but think about it.  What does your doctor tell you to do when you complain of being tired and stressed out.  He/She usually tells you to start exercising which is really advice to start expending energy, which can be stressful.

 Ironic but true.  Same with mortgage loans.  Borrowing more (via a cash OUT loan) is often a better loan than borrowing less. One reason we are a flat fee lender—only charging $500 is because we don’t want our fee to be the reason someone doesn’t borrow more.   We charge the same on $100,000 loan as we would a $417,000 loan. Our fees don’t change.

 Here’s why:  A family’s mortgage is the largest bill a family typically has.  Therefore, the correct management of the mortgage truly sets the family up to succeed or fail financially.  It’s as simple as that!  This why we are in the mortgage business…we want to have a biggest positive impact on people’s financial lives.

Mortgages as tools.  That’s all they are. Tools. And having the right tools is critical when building wealth,  just like having the right tools is critical for building anything!  Need to build a home?…you better have some home building tools! Need to build wealth—you better have a mortgage that helps you GET money.

 For example, most people don’t know that I actually sold a home to raise the capital to start Mylendingplace.com. It was a VERY hard decision to liquidate that asset but I needed to raise some money knowing I might be “paycheck less” for a few months. It actually took me about 7 months to get the wheels turning.   And 5 years ago (this month!) we close our first loan.

 Notice I sold a home to raise the money.  How did I acquire that asset?  Did the tooth fairy smile on me?  Did Obama give me some money? Did a televangelist pray over my checkbook?  No? …. I got a MORTGAGE to acquire an asset and when that asset went up in value I sold the asset to start a company.  My business—my livelihood started from acquiring a mortgage.  Or said another way, I gained wealth buy getting into debt.

 Mortgages allow people to gain assets.  And that’s what we are about—helping people get access to capital so they can buy assets.  Mostly homes…Homes, investment properties, second homes.

 We strive to look at the “big picture”—what the client is truly trying to do.   And it’s often frustrating when our clients choose the wrong mortgage and look at things myopically—by asking only one question.  “What’s the rate?”

Here’s a quick story of someone who we helped in a big way.   He called and asked “What is your rate?” I told him and also advised him it usually doesn’t make sense to refinance a home loan under $100K.  He was kinda surprised I was advising against the mortgage…but it’s true. If it doesn’t make sense to refinance we don’t want to do the loan.  Because the savings just aren’t there relative to the closing costs.  Does it really make sense to refinance a home and save only $75 but it costs $3000 to refinance?

But as he and talked he kept using the words “retirement.”    Was he really chasing a mortgage rate?  No…he was trying to lower his bills so when he retired he could have a more comfortable life. This was his bigger financial goal.

 Long story short, we ended up doing a cash out refinance, lowering his bills $700+ because after the 15 year fixed rate, he would have very few bills left.  He consolidated his high interest credit card debt into a single, tax-deductible note at 4.25%–15 year fixed.

 He didn’t just get a loan from us. He got a new financial life.  And that makes me happy.  Very happy.

 What interesting is—at first—he only wanted to refinance his home…he was only looking at lowering his mortgage.   But since he already had a cash out loan and, remember, in Texas “once a cash out, always a cash out” I suggested he take advantage of his equity and pay off a credit card that had a $20K balance and a monthly payment of $400. He was already going to get a higher rate for his cash out loan since he had a prior cash out..so I said “why not pay off this bill” and lower your bills an additional $400. He replied: “I never thought of that.” Just refinancing his home he would have saved $, but paying off bills and lowering his mortgage rate saved him $$$. 

The point here is:  When committing to a 30 or 20 or 15 year fixed rate, ask yourself “what am I really trying to do? What is my financial goal beyond just getting a sexy rate”  Once you have that bigger goal in mind….THEN PICK THE MORTGAGE.

Stephen Covey says it this way:  “Begin with the end in mind.”  Decide where you’re trying to go and then pick the mortgage that would help you accomplish that.  It’s really that simple.

We help people all over Texas buy or refinance homes.   If you want to refinance your home, consider a cash out refinance—because eliminating debt is another way of lowering your bills.   Sometimes borrowing MORE can actually put MORE in your checking account.

If you’d like more information regarding a Texas refinance or a home equity loan please call us at 512-996-8194

Dallas:  972-325-2120     Austin:  512-996-8194     Houston:  713-589-2244

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