Texas Mortgage: Refinancing after a divorce–cash out loans.

Refinancing after a Texas Divorce:  

Going through a divorce has enough challenges!  However, when there’s real estate involved many people wonder how their shared mortgage should be handled.  

 How do you get someone off title after a divorce?

  How do you handle the cash out refinance part in light of Texas cash out laws?

These are just some of the questions we get asked everyday.  As a local Texas Mortgage company we have help many people with their divorce refinance concerns. 

We are lawyers, nor do we give legal advice.   However, we are a licensed Texas mortgage broker company and we’ve helped lots of people refinance their homes after a divorce. 

We are very well versed in the mortgage aspect of a divorce.

And we do we not charge points-make sure you take a look at our closing costs.    For example, if you went to Bank of America or Wells Fargo or Chase mortgage you’ll pay points as well as an application fee.  

Not with www.mylendingplace.com (We are have access to all kinds of name brand banks–Wells Fargo, Flagstar, just to name a couple–and we don’t charge points!)

Here are commonly asked questions about refinancing after a Texas Divorce:

1) Make sure you have a divorce decree.  

 Remember, it takes 30 days to close a mortgage loan and unless you have a divorce decree we can’t close until you have this.  

  And because Texas is a community property state, should you refinance prior to the divorce decree your soon-to-be ex spouse would go back on title-something you probably don’t want.

2) The two parts to a home’s ownership is the title and the mortgage. 

Removing someone from title is relatively easy, however in order to remove someone from a mortgage requires refinancing.  Not refinancing someone off the mortgage forever ties them to the mortgage.   Beware of anyone who suggest you “leave an ex” on the mortgage.

3) Protecting your credit after a divorce requires you to remove your ex from every shared credit line. 

It’s simply the only way to truly protect your credit.   Just because a divorce decree states someone should pay a mortgage or credit card doesn’t mean they actually will.  

However, refinancing them off the mortgage assures that you are protected against anything your ex does or does not do (credit wise).   

4) Cash out refinancing after a Texas Divorce. 

As you know, Texas already has a lot of weird cash out or home equity loan rules.   The most popular cash out refinance rule is the 80% LTV rule.  This means, by state law, an individual or couple can only pull up to 80% of the their home’s value via a cash out refinance.   

For example, if someone owes $50,000 on a home and the home is worth $100,000 then-by state law-the individual or couple can go up to 80% or in this example $80,000.     HOWEVER, when there’s a Texas divorce refinance involved there is a special provision so that the ex-spouse can get his or her rightful equity.     

Divorce refinancing is a bit tricky however we are a Texas-based mortgage company and we’ve helped lots of people just like you who need to refinance after a divorce.  Call us today!

We do home loan and divorce refinancing all over the State of Texas!

http://en.wikipedia.org/wiki/Community_property

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