Texas Home Equity Loan Refinancing Affidavit (1-1-2018)

Texas Home Equity Loan Refinancing Affidavit (1-1-2018)     
   

Lender: _____________________________ 

Homestead: ____________________________

Commitment No. ___________________________

STATE OF TEXAS   

Before me, the undersigned authority appeared the Affiants (whether one or more), who are the owner  of the homestead and spouse and who being by me duly sworn, on his/her/their oaths stated the following to be true, correct and complete:

1.  The refinance is not closed before the first anniversary of the date the extension of credit was closed.

2.  The refinanced extension of credit does not include the advance of any additional funds other than:

        i.  funds advanced to refinance a debt described by Subsections (a)(1) through (a)(7) of Section 50, Article XVI, Texas Constitution; or

        ii.  actual costs and reserves required by the lender to refinance the debt;

3.  The refinance of the extension of credit is of a principal amount that when added to the aggregate total of the outstanding principal balances of all other indebtedness secured by valid encumbrances of record against the homestead does not exceed 80 percent of the fair market value of the homestead on the date the refinance of the extension of credit is made; and

4.  The lender provided the owner the following written notice on a separate document not later than the third business day after the date the owner submits the loan application to the lender and at least 12 days before the date the refinance of the extension of credit is closed:

"YOUR EXISTING LOAN THAT YOU DESIRE TO REFINANCE IS A HOME EQUITY LOAN.  YOU MAY HAVE THE OPTION TO REFINANCE YOUR HOME EQUITY LOAN AS EITHER A HOME EQUITY LOAN OR AS A NON-HOME EQUITY LOAN, IF OFFERED BY YOUR LENDER.”

"HOME EQUITY LOANS HAVE IMPORTANT CONSUMER PROTECTIONS.  A LENDER MAY ONLY FORECLOSE A HOME EQUITY LOAN BASED ON A COURT ORDER.  A HOME EQUITY LOAN MUST BE WITHOUT RECOURSE FOR PERSONAL LIABILITY AGAINST YOU AND YOUR SPOUSE.”

"IF YOU HAVE APPLIED TO REFINANCE YOUR EXISTING HOME EQUITY LOAN AS A NON-HOME EQUITY LOAN, YOU WILL LOSE CERTAIN CONSUMER PROTECTIONS.  A NON-HOME EQUITY REFINANCED LOAN:

1.      WILL PERMIT THE LENDER TO FORECLOSE WITHOUT A COURT ORDER;

2.      WILL BE WITH RECOURSE FOR PERSONAL LIABILITY AGAINST YOU AND YOUR SPOUSE; AND

3.      MAY ALSO CONTAIN OTHER TERMS OR CONDITIONS THAT MAY NOT BE PERMITTED IN A TRADITIONAL HOME EQUITY LOAN.”

"BEFORE YOU REFINANCE YOUR EXISTING HOME EQUITY LOAN TO MAKE IT A NON-HOME EQUITY LOAN, YOU SHOULD MAKE SURE YOU UNDERSTAND THAT YOU ARE WAIVING IMPORTANT PROTECTIONS THAT HOME EQUITY LOANS PROVIDE UNDER THE LAW AND SHOULD CONSIDER CONSULTING WITH AN ATTORNEY OF YOUR CHOOSING REGARDING THESE PROTECTIONS.”

"YOU MAY WISH TO ASK YOUR LENDER TO REFINANCE YOUR LOAN AS A HOME EQUITY LOAN.  HOWEVER, A HOME EQUITY LOAN MAY HAVE A HIGHER INTEREST RATE AND CLOSING COSTS THAN A NON-HOME EQUITY LOAN."

5.  The Affiants acknowledge that the refinance complies with the requirements of Subsection (f)(2) of Section 50, Article XVI, Texas Constitution and that lender and Stewart Title Guaranty Company may rely on this Affidavit.

   

_________________________________
(Print Name)

_________________________________
("Affiants")

   

[Print Additional Signatures as Necessary]

   
State of Texas

County of _________________

Sworn to and subscribed before me the undersigned authority by _________________________ on this the _______ day of ______________, 20_____.

   
 ______________________________

   

Notary Public in and for the State of Texas

 

No guidelines are available for this form at this time.