Second Mortgages in Texas
If you've owned your home for a while, you've likely built up equity. A second mortgage lets you borrow against that equity without touching your first mortgage. That matters if you have a low rate you don't want to give up. You get the cash you need, and your current loan stays as it is.
Why Homeowners Choose a Second Mortgage
Keep Your Low Rate
Your first mortgage and its rate stay the same.
Cash in One Lump Sum
Get all your money at closing to use right away.
Steady Payment
Many second mortgages have a fixed rate, so your payment doesn't change.
Use It Your Way
Pay for repairs, pay off high-interest debt, or cover a big expense.
Help When You Buy
A second mortgage at purchase can help you avoid mortgage insurance or a jumbo loan.
Things to Know
Texas has its own rules for borrowing against the home you live in. Your first and second mortgage together can't be more than 80% of your home's value. You'll wait at least 12 days between applying and closing, and you'll have 3 days after closing to change your mind. You can only have one home equity loan on your home at a time, and Texas limits many of the fees. If you're married, your spouse will need to sign, even if they're not on the loan. These rules are there to protect you, and I'll walk you through each one.
Common Questions
How much can I borrow with a second mortgage in Texas?
In Texas, your first mortgage plus your second mortgage can't be more than 80% of your home's value. For example, if your home is worth $300,000 and you owe $200,000, you may be able to borrow up to $40,000.Should I get a second mortgage or a cash-out refinance?
If your current rate is low, a second mortgage lets you keep it and borrow only what you need. A cash-out refinance replaces your whole loan at today's rate. I'll compare both so you can see which costs less over time.What's the difference between a second mortgage and a HELOC?
A second mortgage gives you one lump sum, usually with a fixed rate and payment. A HELOC is a line of credit you can draw from as you need it, and the rate is usually variable. If you know exactly how much you need, a second mortgage is often the simpler choice.Why does Texas make me wait 12 days?
Texas law gives you time to review your loan before you commit, because your home is on the line. The 12 days also give us time to finish your appraisal and paperwork, so it rarely slows things down much.Can I get a second mortgage on a rental property?
Yes. The Texas home equity rules apply to the home you live in, so a rental or investment property follows different rules. Lender requirements vary, so I'll find the best fit for your property.
Have Questions? Let's Talk.
Not sure if a second mortgage or a HELOC fits you better? Book a free call, and we'll look at your options together.
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