Refinance Your Mortgage in Austin, Texas
Lower your rate, shorten your term, eliminate PMI, or tap your home equity. Multiple refinance options for Austin homeowners with competitive rates and fast closings.
Why Refinance in Austin?
Austin homeowners have built substantial equity as home values have appreciated significantly over the past decade. Whether you want to lower your monthly payment, pay off your home faster, remove mortgage insurance, or access cash for renovations or other goals, refinancing can be a powerful financial tool.
The right time to refinance depends on your current rate, how long you plan to stay in the home, and your financial goals. A rate reduction of just 0.5% on a $400,000 loan saves over $100/month and $36,000+ over the life of the loan.
Texas Cash-Out Rules
Texas has unique constitutional protections for homestead cash-out refinances under Section 50(a)(6). These include a maximum 80% loan-to-value, mandatory waiting periods, and specific closing requirements. Working with a lender experienced in Texas-specific compliance is essential to avoid delays.
Refinance Options
Rate-and-Term Refinance
Replace your current mortgage with a new one at a lower rate or different term. No cash out. Ideal for reducing your payment, switching from ARM to fixed, or shortening from 30 to 15 years.
Cash-Out Refinance
Tap your home equity by refinancing for more than you owe. Use funds for home improvements, debt consolidation, investments, or any purpose. Conventional allows up to 80% LTV; VA allows up to 100% LTV.
FHA Streamline Refinance
If you have an existing FHA loan, streamline refinancing requires minimal documentation — often no appraisal, no income verification, and reduced closing costs. Fast closings in as little as 15-21 days.
VA IRRRL (Interest Rate Reduction)
Veterans with existing VA loans can use the IRRRL program for simplified refinancing. No appraisal required, minimal documentation, and the funding fee is only 0.5%. One of the fastest, cheapest refinance programs available.
Jumbo Refinance
Refinance a jumbo mortgage above $832,750. Portfolio and agency jumbo programs offer competitive rates for high-value properties in Westlake, Barton Creek, and other Austin luxury neighborhoods.
PMI Removal Refinance
If your home has appreciated and you now have 20%+ equity, refinancing can eliminate private mortgage insurance — saving $100-300+ per month even without a significant rate change.
Refinance Requirements
Equity / Loan-to-Value
- Rate-and-term: 3-5% equity minimum (95-97% LTV)
- Cash-out (conventional): 20% equity minimum (80% LTV)
- Cash-out (VA): Up to 100% LTV for eligible veterans
- Cash-out (FHA): 20% equity minimum (80% LTV)
- Texas cash-out (50(a)(6)): 80% LTV maximum (constitutional limit)
Credit Score
Conventional refinance requires 620+ (best rates at 740+). FHA Streamline and VA IRRRL have more lenient requirements, often accepting current payment history as the primary qualifier.
Seasoning Requirements
Most refinance programs require your current mortgage to be at least 6-12 months old. FHA Streamline requires 210 days since closing and 6 payments made. VA IRRRL requires 210 days since the first payment.
Break-Even Analysis
Before refinancing, calculate your break-even point: closing costs divided by monthly savings. If closing costs are $6,000 and you save $200/month, break-even is 30 months. If you plan to stay in the home longer than that, refinancing makes financial sense. Use our mortgage calculator to run the numbers.
Texas 50(a)(6) Cash-Out Requirements
- Maximum 80% LTV (constitutional cap)
- 12-day waiting period from application to closing
- 3-day right of rescission after closing
- Homestead properties only (primary residence)
- One cash-out refinance per 12-month period
- Closing must occur at lender, attorney, or title company office
Refinance FAQ
Refinancing makes sense when you can reduce your rate by 0.5-0.75%+, shorten your term, eliminate PMI, or need to access equity. The key metric is your break-even point — if you stay past break-even, refinancing is beneficial. Use our calculator to estimate your savings.
Rate-and-term: 3-5% equity. Cash-out conventional: 20% equity. VA cash-out: up to 100% LTV. Texas cash-out has a constitutional 80% LTV cap. Austin's appreciation means many homeowners have built significant equity.
A cash-out refinance replaces your mortgage with a larger loan, giving you the difference in cash. Conventional allows up to 80% LTV. On a $500,000 home with a $300,000 balance, you could access up to $100,000 for any purpose — renovations, debt consolidation, investment, etc.
Texas has constitutional rules for cash-out refinances: 80% LTV max, 12-day waiting period, 3-day rescission, homestead only, and specific closing location requirements. These rules protect homeowners but require a Texas-experienced lender. Contact us for expert guidance.
Typical refinance: 30-45 days. Streamline programs (FHA Streamline, VA IRRRL): 15-21 days. Texas cash-out has mandatory minimums of 12 days + 3-day rescission. We work to close as quickly as possible within regulatory requirements.
Explore Other Loan Programs
Helpful articles: Fixed vs. Adjustable Rates · Closing Costs in Texas · How Much House Can I Afford?
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