A Texas homeowner wants to refinance his existing home equity loan into a conventional rate-and-term refinance. The home equity loan closed 8 months ago. Under Texas Constitution Article XVI, Section 50(f)(2), can he proceed with the refinance now?
Correct Answer
B) No, because he must wait at least 12 months from the closing date of the original home equity loan
Under Texas Constitution Article XVI, Section 50(f)(2), a home equity loan may be converted to a non-home equity loan only after at least one year (12 months) has passed since the original closing date. Since the loan closed only 8 months ago, the borrower must wait 4 more months.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Tx Specific Financing Question
Background Knowledge for Tx Specific Financing
Real World Application in Tx Specific Financing
Common Mistakes to Avoid on Tx Specific Financing Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
More Tx Specific Financing Questions
A Texas homeowner obtained an FHA loan three years ago with a 3.5% down payment. She now wants to refinance into a conventional loan to eliminate mortgage insurance. Which condition must be met for her to remove mortgage insurance through a conventional refinance?
A veteran and his wife purchase a home in Texas using a VA loan. Two years later, they divorce. The divorce decree awards the home to the wife, who is not a veteran. What happens to the VA loan?
A Texas foreclosure sale is scheduled for a property with a deed of trust. Under Texas Property Code §51.002, on which day and at what location must the sale take place?
A Texas reverse mortgage borrower has a homestead valued at $300,000 with no existing liens. Under the 80% LTV rule, the lender offers a reverse mortgage equal to 50% of the maximum allowed. How much will the borrower receive?
A Texas homeowner with a VA loan defaults on payments. The lender initiates foreclosure. Under Texas law, which method of foreclosure is most commonly used for VA loans secured by a deed of trust?
- → A veteran purchases a home in San Antonio for $320,000 using a VA loan with no down payment. The VA funding fee is 2.15% for a first-time VA borrower with no down payment. If the veteran finances the funding fee into the loan, what is the total loan amount secured by a deed of trust?
- → A buyer in Dallas is purchasing a home for $240,000 using an FHA loan with 3.5% down. The annual MIP rate is 0.55% of the base loan amount. What is the monthly mortgage insurance premium for the first month?
- → A Texas lender conducts a non-judicial foreclosure sale, but the notice of sale contained an incorrect legal description of the property. The winning bidder later discovers the error. Under Texas law, what is the likely outcome?
- → A Texas homeowner takes out a home equity loan and later wants to refinance it. Under Texas Constitution Article XVI, Section 50(f), how long must the homeowner wait after the original home equity loan was closed before refinancing?
- → A veteran in Texas is purchasing a home with a VA loan. The property is located in a designated flood zone. Under VA and Texas requirements, which of the following is TRUE?
- → 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?
- → A Texas veteran applies for a land loan through the Texas Veterans Land Board (VLB). The VLB program offers financing for the purchase of at least how many acres of land?
- → A lender in Texas includes a prepayment penalty clause in a home equity loan agreement on a borrower's homestead. The borrower signs the agreement without noticing the clause. Under Texas Constitution Article XVI, Section 50(a)(6), what is the status of this prepayment penalty?
- → James and Olivia, a married couple, own a homestead in Dallas, Texas. James wants to obtain a home equity loan, but Olivia refuses to sign the loan documents. The lender suggests that James alone can proceed since the property deed is only in his name. Under Texas law, which statement is correct?
- → A buyer in Texas is using an FHA loan with a 3.5% down payment. The FHA charges two types of mortgage insurance. Which of the following correctly identifies them?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
Sandra, a senior homeowner in Texas, is considering a reverse mortgage on her homestead. Under Texas Constitution Article XVI, Section 50(k), which of the following requirements must be met?
Next Question
A married couple in Texas purchases a home using a deed of trust as the security instrument. The husband dies unexpectedly, and the wife wants to understand the loan structure. Under Texas deed of trust law, who holds the power of sale if the borrower defaults?