Separate equity, the proposed loan and cash received.
A cash-out refinance replaces a mortgage with a new loan that may provide funds after payoffs and costs. An FHA review considers the property, occupancy, mortgage history, income, debts and current lender requirements.
Be clear about your cash purpose. Cash-out and FHA streamline refinancing are different requests.
Bottom line: Equity, the lender-approved loan and the money received at closing are different amounts.
Cash Calculation
Keep each part of the calculation on its own line.
Estimated equity
$250,000 estimated value minus a $150,000 mortgage payoff gives $100,000 estimated equity in this arithmetic illustration.
Assumed gross loan
Suppose the proposed gross loan is $185,000. This is an assumed number, not an FHA maximum or Texana offer.
Illustrated cash
$185,000 minus the $150,000 payoff and $7,000 of costs/prepaids leaves $28,000 before any other deductions. Actual figures require lender review.
Payment and Mortgage History
Compare the full payment and length of the debt.
Include mortgage insurance, taxes and homeowners insurance. List payments on debts you would pay off separately so you can see what changes.
Keep financed fees straight
Put the gross loan, mortgage insurance treatment, closing charges and prepaids on separate lines. Do not count a financed fee in the balance and then deduct the same fee twice.
Consider the remaining term and risk
Compare total borrowing costs and how long you will owe the debt. Moving unsecured debt onto your home puts the home at risk if the mortgage cannot be paid. Refinancing alone does not solve an ongoing budget shortfall.
Describe mortgage history accurately
Provide recent payment information and describe any bankruptcy, foreclosure or forbearance. The lender must determine the applicable requirements and whether an exception exists; an article cannot do that.
Common Traps
Do not get tripped up by half-true FHA advice.
“My equity is the cash I will receive”
The approved loan, payoffs, costs and other deductions determine cash at closing.
“A smaller payment means a cheaper loan”
A longer repayment term or additional fees can increase total cost. Compare both payment and term.
“An article approves my exception”
Mortgage history and the complete file need review under current HUD guidance and lender requirements.
Source Notes
Where this guidance comes from.
HUD Handbook 4000.1 governs FHA policy. This page is a preparation worksheet rather than a numerical summary of FHA limits. The illustration is arithmetic only. Current program and property-state availability must be confirmed for the file.
The article is informational, not a loan approval, legal advice, credit counseling, APR disclosure, or commitment to lend. Final eligibility depends on the complete file and underwriting.
No. The lender-approved loan, existing payoffs, closing charges, mortgage insurance treatment and other deductions determine cash at closing.
Bring the property state, estimated value, mortgage and other lien payoffs, current housing payment, occupancy and payment history, income, debts and cash purpose.
No. Explain whether you need cash or are considering a change to an existing FHA mortgage. The lender must review the appropriate refinance path.
Call Texana Bank Mortgage at (888) 272-8264.
Reviews
What borrowers say about Texana Bank
Real reviews from real borrowers, pulled live from our Google Business Profile.
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
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Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
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Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
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Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
D
Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
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Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
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Dejan Jajcevic
★★★★★
I’ve worked with mini bankers before and I used to do them over a decade ago myself and my experience that I had with Chad was nothing short of phenomenal. He is a wonderful Banker does a very diligent job and did not miss any moments of reassuring me where my loan was and closing I couldn’t say enough good things about him and I hope if I ever need to go through this stressful process again he is still in business to take care of me
J
James Reaves
★★★★★
Adam is awesome super friendly easy to work with always aware of what’s going on and keeps you informed which is great.
L
Lesli Hopkins
★★★★★
Lynette is absolutely awesome to work with! She takes the time to make you comfortable with the process and answers any questions completely and accurately
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Bobby Strickland
★★★★★
Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.
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Abraham Sanchez
★★★★★
Working with Greg Darlin has been an awesome experience. An honest and sincere individual. He is to the point and very very knowledgeable. I appreciate the fact that he didn’t try to give me the run around and through the entire process I learned a few things. Thank you.