A Texas homestead is valued at $450,000 with an existing first mortgage balance of $280,000. Under the Texas Constitution's 80% LTV cap, what is the maximum home equity loan amount the homeowner can obtain?
Correct Answer
D) $80,000
Maximum total liens = $450,000 × 0.80 = $360,000. Subtract existing mortgage: $360,000 − $280,000 = $80,000.
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A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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- → A Texas property owner defaults on both a first mortgage and a second-lien home equity loan. The first mortgage lender forecloses and sells the property at the trustee's sale. Under Texas law, what happens to the second-lien home equity loan?
- → Under Texas foreclosure law, a property is sold at a trustee's sale on the first Tuesday of the month. The winning bidder pays the full purchase price. Under Texas Property Code, when does the bidder receive a trustee's deed?
- → In Texas, the standard security instrument for real estate loans is a deed of trust rather than a mortgage. Which parties are involved in a Texas deed of trust?
- → Under Texas Constitution Article XVI, Section 50(a)(6), a home equity loan on a Texas homestead must comply with numerous constitutional requirements. All of the following are required provisions of a Texas home equity loan EXCEPT:
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- → A Texas homeowner closes on a home equity loan on January 15. The loan proceeds are not actually disbursed until January 18, three days after closing. The borrower exercises the right of rescission on January 26. Under Texas Constitution Article XVI, Section 50(a)(6), is this rescission timely?
- → A Texas lender fails to cure a constitutional defect in a home equity loan within the required timeframe. The borrower files a lawsuit. Under Texas Constitution Article XVI, Section 50(a)(6)(Q)(x), what is the potential penalty for the lender's failure to cure?
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Previous Question
A Texas homeowner's property is appraised at $320,000. Under the Texas Constitution's 80% LTV requirement for home equity loans, what is the maximum total indebtedness that can be secured by this homestead?
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Miguel takes out a $200,000 home equity loan on his Texas homestead at 6% annual interest. Under Texas law, home equity loans cannot include prepayment penalties. If Miguel pays off the loan after exactly 8 months, how much total interest will he owe?