Home Equity
Cash-Out Refinance in Houston
Published September 24, 2026 · Last updated September 30, 2026
Advertiser disclosure: AssistQuote may be paid when you visit or do business with a partner through our links. The provider sets your price. How we make money
The short answer
In Houston, taking cash out of your main home follows Texas home equity rules. The new loan plus other debt on the home generally can't pass 80% of its fair market value, and there are waiting periods. You're also replacing your current mortgage. Your home backs the loan, so you could lose it if you don't repay.
Not a quote, offer or approval. AssistQuote is not a lender.
- No phone number neededSee costs and options before you share any contact details.
- Real price ranges, with sourcesWe name where every number comes from and when it was published.
- You choose who to contactWe show options. You decide if, when and who to reach out to.
We never ask for a Social Security number, date of birth or documents.
Cash-out refinancing works differently in Texas
For a Houston homeowner, taking cash out of a primary residence isn't just a standard refinance with a larger loan amount.
Texas has constitutional rules governing home equity borrowing.
For a Texas home-equity transaction, the principal amount of the new loan plus other debt secured by the homestead generally cannot exceed 80% of the home's fair market value.
That limit can matter before rate shopping even begins.
Start with the 80% calculation
Suppose your Houston home is worth $500,000.
80% is:
$400,000
If you currently owe $300,000 against the home, there is a $100,000 difference between the existing secured debt and the 80% limit.
That does not mean you can automatically receive $100,000 in cash.
The final amount can be lower because of underwriting, lender requirements, closing costs, property valuation and other factors.
Then look at the mortgage you're replacing
This is the part homeowners can miss.
A cash-out refinance doesn't leave your existing first mortgage alone.
You're replacing it.
If you currently owe $300,000 at a favorable rate and want $50,000 in cash, compare the cost of refinancing the entire balance, not just the cost of the additional $50,000.
Put these side by side:
Current mortgage
- Balance
- Rate
- Payment
- Remaining term
New cash-out loan
- New balance
- Rate
- APR
- Payment
- Term
- Closing costs
- Cash received
That comparison can completely change which option makes sense.
Texas timing rules matter
Texas constitutional home equity transactions include protections that affect the closing timeline.
The loan generally cannot close before the required 12-day waiting period has passed after the application and required notice.
Homeowners also generally have a three-day period after closing in which they can rescind a Texas home equity loan.
Don't let anyone pressure you to treat those waiting periods as an inconvenience. They're there so you have time to understand what you're putting against your home.
One more Texas issue if you've borrowed against the home before
If your existing mortgage history includes a Texas home equity loan, tell the lender early.
Texas has specific rules governing the refinancing of existing home equity debt, including circumstances in which an existing home equity loan may be refinanced as a non-home-equity loan.
That choice can affect legal protections attached to the loan.
Don't assume that every refinance of an existing Texas home equity loan works the same way. Ask the lender exactly how the new loan will be classified and what protections change.
What Houston homeowners should compare
A cash-out refinance isn't automatically better because its rate is lower than a credit card or personal loan.
Compare it with:
- Keeping your existing mortgage
- A home equity loan
- A HELOC, if appropriate
- Borrowing less
- Not borrowing against the home at all
The goal isn't to pull out the most equity possible.
It's to find out whether accessing that equity actually improves your financial position after the new payment, interest, closing costs, loan term, and risk to the home are included.
Keep reading
Compare a Texas cash-out refinance, Houston home equity loans, HELOC.
Why AssistQuote is different
On some websites
They ask who you are first
Some forms want your name and phone number before they show you anything useful. You may not know which companies will get it, or how many will call.
Here, you choose
Answer a few questions without giving your name, email or phone number. See prices, what to ask, and providers to explore. You choose who to contact and what to share with them.
- 1
Check local costs
See typical price ranges for your area and what moves the price up or down.
- 2
Tell us what you need
Answer a few questions about the work, not about who you are.
- 3
You decide what's next
Save or email your options, or visit a provider when you're ready.
Cost information is not a live rate, quote or offer. A provider shown here is not an endorsement. Each provider sets its own prices, privacy and contact rules.
Questions people ask
Ready to see cash-out refinance options in Houston?
Start with your ZIP code. You will see typical local costs and options to explore. No phone number, email or name needed to look.
You choose if, when and who to contact.
Related services
Home Equity Loans
Explore fixed home equity loan options secured by your property.
HELOC
See how a home equity line of credit works, and what can change your payment later.
Home Equity Investments
See how a home equity investment (HEI) trades part of your home's future value for cash now.
Sources
- Texas Constitution, Article XVI, Section 50
- Texas Office of Consumer Credit Commissioner, Home equity lending
- Consumer Financial Protection Bureau, Loan Estimate explainer