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Texas borrowers are now able to complete re-financing as rate and term transactions even after obtaining a Texas home equity loan Now called Texas (a)(4) This is a huge advantage for folks trying to obtain a lower interest rate, because cash out loans typically do have a higher interest rate than a rate and term refinance
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Texas’s reluctance to embrace home equity loans is well-known; it was not until 1997 that Texas voted, through a ballot initiative, to amend the Texas Constitution to allow such loans. But, when.