Refinance • Austin & Texas

Mortgage Refinancing in Austin, Texas

Should I refinance, or am I just resetting the clock?

A lower rate is not automatically a better loan. I start with your current payment, how long you will stay, and what a new loan costs to close. If the savings do not cover the fees in a timeframe that fits you, I will say so. Texas cash-out is a different loan: 80% maximum combined loan-to-value, and a 12-day wait.

See My Options Book a 15-Min Call (512) 956-6010

By Adam Styer, Senior Loan Officer • NMLS #513013 • Company NMLS #2072896

Rate-and-Term

Lower Monthly Rate

Reduce interest cost and monthly payments

Texas Cash-Out

80% Max CLTV

Strict statutory protections under Texas 50(a)(6)

PMI Cancellation

Drop Monthly PMI

Remove private mortgage insurance at 20% equity

The File

Conditions Up Front

Appraisal and title stay on the list until they are in

What should I know about this option?

What Are Your Refinance Options in Texas?

Refinancing replaces your current mortgage with a new loan featuring updated terms, interest rates, or balances. In Texas, refinances fall into two primary categories: Rate-and-Term Refinancing (adjusting your rate or shortening your term without extracting cash) and Texas Section 50(a)(6) Cash-Out Refinancing.

Under the Texas Constitution, cash-out refinances are capped at 80% Combined Loan-to-Value (CLTV) to safeguard homeowner equity. Texas law also mandates a mandatory 12-day cooling-off disclosure period, requires closings to take place at a licensed title company or attorney's office, and limits closing fees to 2% of the loan amount.

Common Situations

Who This Program Is Built For

The situations where I open this file first.

Austin Rate Reducers

You bought when rates were higher and want to know if a new loan actually lowers the cost. I run the break-even before I recommend one.

Buyers with 20% Equity

Borrowers who put 3% to 10% down and now have over 20% equity due to Austin property appreciation can refinance to drop private mortgage insurance entirely.

Debt Consolidators

Homeowners carrying high-interest credit card debt or personal loans who want to consolidate into a single tax-advantaged mortgage payment.

15-Year Term Accelerators

Borrowers with stable cash flow who want to refinance from a 30-year into a 15-year fixed loan, saving tens of thousands in cumulative interest.

Options & Milestones

Simple Options & 3-Step Process

The versions of this loan I actually use, and how my team and I move a file.

Rate-and-Term Refinance

Lower your interest rate, switch from an adjustable to a fixed rate, or shorten your loan term without pulling cash out.

Best for: Lower monthly payments & interest savings

Texas 50(a)(6) Cash-Out

Access up to 80% of your home's appraised value in cash for renovations, business investments, or debt consolidation.

Best for: Extracting liquid equity from your home

FHA Streamline & VA IRRRL

Streamlined refinances for current FHA or VA loan holders requiring no new appraisal and minimal underwriting documentation.

Best for: Fast rate reduction for government loans

Break-Even Equity Analysis

I calculate the monthly change and how many months of savings it takes to recover the closing costs. If it does not pay back while you plan to stay, I say do not refinance.

Wholesale Lender Lock

I compare lenders that will do a Texas rate-and-term refinance or a 50(a)(6) cash-out, and I show you the rate next to the fees.

Conditions Up Front

My team and I coordinate the appraisal, title, and the Texas disclosures, including the 12-day wait on a cash-out.

Illustrative Scenario

In Action: A Clear Scenario

A transparent look at real-world numbers, underwriting parameters, and successful funding.

Illustrative Case • Rate & PMI Elimination Austin (Circle C), Texas

Circle C Homeowner — Dropping PMI & Saving $462/Month

The Situation: An Austin couple bought a Circle C home three years ago for $580,000 with 5% down ($551,000 initial loan), paying $175/month in private mortgage insurance (PMI). Current loan balance was $525,000.

The Appraisal & Opportunity: Recent neighborhood comparable sales showed the home was now worth $710,000, bringing their current loan-to-value to 74% (26% equity).

The Wholesale Refinance Solution: Adam locked a new conventional 30-year fixed mortgage with a wholesale lender at a 0.625% lower interest rate. Because the LTV was well under 80%, PMI was eliminated completely. Combined principal, interest, and PMI savings totaled $462/month ($5,544/year). Total closing costs were recovered in just 11 months.

Disclosure: Illustrative scenario based on composite borrower profile. Actual interest rates, loan limits, and qualification guidelines depend on credit profile, property appraisal, and lender criteria.

Supporting Research & Worksheets

Explore the Details

In-depth underwriting guidelines, loan matrices, and interactive tools in our specialist resources.

Texas Home Equity (HELOC & 50(a)(6)) Rules Read Guide →

Understanding Texas constitutional protections, 80% equity caps, and HELOC options.

Monthly Payment & Refinance Calculator Calculate Savings →

Compare your current monthly payment against new wholesale rates and break-even timelines.

Compare an Existing Loan Estimate / Rate Check Submit Loan Estimate →

Upload a competitor's loan estimate for a transparent, line-by-line fee comparison.

Texas Refinance Closing Costs Worksheet View Worksheet →

Breakdown of Texas title insurance premiums, escrow reserves, and lender fees.

Refinance Options →

Clear Answers

Frequently Asked Questions

Straightforward answers to the questions Central Texas borrowers ask most.

How do I calculate my refinance break-even point?

Divide your total closing costs by the monthly payment difference. For example, divide the closing costs by the monthly payment difference. That is how many months it takes to break even. If you plan to stay in the home longer than 12 months, refinancing is financially advantageous.

What is the Texas 50(a)(6) cash-out rule?

Section 50(a)(6) of the Texas Constitution dictates that total mortgage debt (including first mortgage and any cash taken out) cannot exceed 80% of the home's fair market value. It also includes a 12-day cooling-off disclosure period and limits lender closing fees to 2%.

Can I refinance to remove PMI without putting down extra cash?

Yes! If your home has appreciated since purchase and your current loan balance represents 80% or less of the current appraised value, refinancing into a new conventional mortgage eliminates monthly PMI immediately.

How soon can I refinance after purchasing a home?

For a rate-and-term refinance, there is typically no waiting period for conventional loans (or 6 months for certain lender guidelines). For a Texas cash-out refinance, you must have owned the property for at least 6 months.

Can closing costs be rolled into the refinance loan?

Yes. On rate-and-term conventional, FHA, and VA refinances, standard closing costs and prepaid property tax and insurance escrows can typically be rolled into the new loan balance so you bring minimal or zero cash to closing.

How I work • I compare lenders before I recommend one • Pricing without a retail bank markup • Clear communication and the conditions list up front • You work with me and my team

Scenario review

Should you refinance this loan?

Tell me the price, the timeline, and what you are trying to do. I will tell you whether this loan fits. This is a file review, not a credit pull.

See My Options

Or leave a short note in the form below.

Refinance, or a separate equity loan

A refinance replaces the first mortgage. A home equity loan or line can leave that first mortgage in place, but it adds another payment and the house is the collateral. Compare the combined payments, fees, whether the rate can change, how long you would repay it, and how much equity is available. Texas cash-out rules, including the 80% loan-to-value limit on a Section 50(a)(6) loan, still apply.

The usual paths are a lower payment, a shorter term, or cash out. Send the current payment and what you want to change. Start with the short form.

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