Best Mortgage Refinance Companies in Houston

Frequently Asked Questions

• Introduction

  Refinancing a mortgage can be a complicated process, and hiring a mortgage refinancing broker can make it simpler and faster. There are several things you can do to protect your interests and help your broker complete the process for you.
  

  
  

  Check a potential broker’s online reviews to find one with a good reputation. In addition to the opinions of past clients, check to see if a broker has an online portfolio, which can support the reviews you find from past clients to show a broker’s trustworthiness. This can also help you establish if a broker has handled financing for properties similar to yours.
  

  
  

  Get a written summary of a broker’s rates before committing so you know exactly what hiring your chosen mortgage refinance broker will cost. Find out which lenders work with your broker and what information they need to successfully refinance your mortgage.
  

• When can you apply for a cash-out refinance mortgage in Houston?

  To be eligible for a cash-out refinance mortgage in Houston, you need to have had an existing mortgage loan for at least six months. You will also be prohibited from applying for a new cash-out refinance if it's only been a year since your last one. There is also a 12-day cooling or waiting period, which basically means you cannot close on a property until 12 days have passed since you made the application.

• What is the ideal debt-to-income ratio to be approved for a mortgage in Houston?

  When applying for a mortgage in Houston, lenders consider an individual's debt-to-income ratio to evaluate their financial health and risk. From a lender's perspective, borrowers with a lower DTI show that they can handle monthly mortgage payments better than those with a higher DTI. Lenders favor borrowers with a DTI of 36% or less. This means that a person's total housing expenses, including insurance, HOA fees, and mortgage and property taxes, should not exceed 36% of their total debt.

• Can the spouse of a veteran or service member apply for a VA loan in Houston?

  Yes, the spouse of a veteran or service member can apply for a VA loan in Houston. For the spouse to qualify for a VA loan, his/her spouse should have been a service member who died of military-related causes. Another qualification is that his/her spouse should have been a service member who was missing in action or a prisoner of war for at least 90 days. Also, the surviving spouse of the service member should not have remarried.

• Is there a limit to the amount you can borrow on a jumbo loan in Houston?

  This 2023, the jumbo loan limit set in all counties of Texas is $726,200, and any loan less than this amount is considered a conforming loan. In Houston, jumbo loans are a type of mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. This type of mortgage is often used to purchase higher-end or luxury properties.

• Are FHA loans in Houston assumable?

  Yes, in Houston, FHA loans are assumable because government-backed loan options, including FHA, allow assumable mortgages. This permits homebuyers to take over a seller's mortgage. This offers first-time homebuyers with credit limitations a chance at homeownership. Assumable mortgages offer lower interest rates. They are often less costly for a buyer than applying for a new mortgage. Note that lenders will still need to determine if the person assuming the loan possesses good credit and if they have an ideal debt-to-income ratio.

• How do you refinance a mortgage?

  Decide why you’re refinancing, such as to get a lower interest rate, pay off your loan faster, or to get a lower monthly payment. Share your credit information with your broker along with information about the equity you have in your home. Review your mortgage refinance broker’s quotes and choose the best loan terms.