My wife refinanced our home through Wells Fargo Financial about 10 years ago. She thought she was getting a regular mortgage, but it ended up being a $100,000 Equity Loan at about 6%. Somehow she believes that in Texas it is ILLEGAL to refinance our home with a TRUE MORTGAGE at a lower interest rate from another financial institution to pay off that Equity Loan to Wells Fargo. Is this true? What can she do? Who can she call?
No, that is not true. You can refinance with any lender but there are some guidelines that you must meet. First, you can only refinance to 80% of the appraised value. So, if you currently owe $100,000, your home must appraise for a minimum of $125,000. Next, once you have a equity loan in Texas, anytime you refinance it is considered another equity loan whether you pull more cashout or not. This shouldn’t be a factor for you since the current loan is a equity loan. I work exclusively in Texas, so feel free to call me.