Part 1: Why Texas Homeowners Are Tapping Into Their Equity Now
In the dynamic world of real estate finance, timing can mean everything—and for Texas homeowners, the time to leverage your home equity has never looked better. Whether you’re in Houston, Dallas, Austin, San Antonio, or any of the countless towns and suburbs across the Lone Star State, homeowners are sitting on more equity than ever before. But accessing that equity the right way—through a smart, strategic cash-out refinance—requires more than just filling out an online application. It takes insight, care, and a Texas-based expert like Kenny Merdan of My Loan Partners.
Kenny is no stranger to navigating the complex mortgage landscape. With a reputation for integrity, deep industry knowledge, and a personalized approach that reflects the values of Texas families, Kenny helps borrowers transform built-up equity into real financial opportunity. From consolidating high-interest debt to investing in property renovations or funding major life goals, he ensures each refinance is tailored to your future—not just your finances.
What Is a Cash-Out Refinance?
A cash-out refinance is a loan option that allows you to replace your existing mortgage with a new, larger one—and take the difference out in cash. It’s ideal for homeowners who’ve built significant equity over time and want to put it to work, rather than letting it sit dormant. This strategy not only gives borrowers access to capital but often comes with better terms or rates than personal loans or home equity lines of credit (HELOCs).
For example, if your home is worth $450,000 and your current mortgage balance is $280,000, you may be able to refinance up to 80% of your home’s value (as per Texas law), allowing you to pull out up to $80,000 in tax-free cash (assuming closing costs and reserve requirements are accounted for).
But here’s the kicker—Texas has some of the strictest equity laws in the country. The famous “Texas 50(a)(6) loan” outlines how much equity you can access and the conditions you must meet. That’s why working with a Texas-based lender like Kenny Merdan is so important. He knows the state’s guidelines inside and out, and he helps borrowers avoid the common pitfalls that can delay or derail a refinance.
The Top Reasons Texans Are Choosing to Refinance Right Now
Today’s economic landscape has homeowners reevaluating how they use their biggest financial asset—their home. Whether it’s the rising cost of living, high-interest credit card debt, or simply the opportunity to reinvest in personal goals, cash-out refinancing has become a smart financial tool for thousands of Texas families.
Here are some of the most common and strategic reasons why homeowners are choosing to refinance:
📉 Debt Consolidation: Replace high-interest credit cards or personal loans with one low-rate mortgage payment.
🏠 Home Renovations: Update kitchens, add square footage, or modernize outdated features—boosting home value in the process.
📚 Education Funding: Pay for college tuition or trade school without taking out expensive student loans.
🚗 Large Purchases: Buy a vehicle or fund a major purchase with lower-cost funds than traditional auto loans.
📈 Real Estate Investment: Use the funds as a down payment for a second home, rental property, or vacation getaway.
🌱 Emergency Fund or Reserves: Secure cash for peace of mind, future medical bills, or unexpected costs.
📊 Excel-Style Chart: Common Uses of Cash-Out Funds in Texas
Below is a breakdown of how Texas homeowners are choosing to use their cash-out funds based on recent loan applications and mortgage trend data:
| Use of Cash-Out Funds | % of Homeowners | Typical Loan Size | Strategic Benefit |
|---|---|---|---|
| Debt Consolidation | 42% | $50,000–$85,000 | Reduce monthly payments; raise credit score |
| Home Improvements | 29% | $25,000–$100,000 | Increase home value; upgrade property |
| College/Education Costs | 10% | $15,000–$40,000 | Avoid student loans |
| Major Life Events (wedding, etc) | 8% | $10,000–$30,000 | One-time funding with long-term rate |
| Investment/Down Payment | 7% | $30,000–$100,000 | Build wealth through real estate |
| Reserve or Emergency Funds | 4% | $5,000–$20,000 | Financial peace of mind |
Source: Internal client data and industry research, Texas market (2024–2025)
Texas-Specific Guidelines You Need to Know
Before you decide to tap into your equity, it’s essential to understand how Texas law uniquely governs cash-out refinancing. This is one area where working with a local lender like Kenny Merdan becomes an advantage. Here’s a quick look at the most critical rules:
🛑 80% Rule
You can only refinance up to 80% of your home’s fair market value. No exceptions.
⏳ 12-Month Rule
Once you’ve completed a Texas cash-out refinance, you cannot refinance again for 12 months, even if rates drop or equity increases.
💬 Written Disclosures Required
All homeowners must receive mandatory disclosures outlining their rights, protections, and obligations under Texas law.
🧾 One Loan Limit
Only one cash-out loan is permitted at a time. You cannot stack HELOCs or second liens with your refinance.
These rules are meant to protect consumers—but they also make it more important than ever to work with someone who’s done it before and knows exactly how to get your file cleared, closed, and funded the right way.
Meet Kenny Merdan: Your Texas Cash-Out Refinance Guide
With years of experience in the Texas mortgage industry, Kenny Merdan is more than a lender—he’s a partner in your financial journey. Representing My Loan Partners, Kenny takes pride in offering a hands-on, transparent, and education-first experience that puts your needs front and center. Whether you’re looking to lower your debt, fund a business, or simply free up monthly cash flow, he’ll help you structure the right loan—backed by the right strategy.
📍 Kenny Merdan – Based in Texas
📞 Contact: (651) 417-1085
📧 Email: kenny@applywithkenny.com
Texas Cash-Out Refinancing Made Easy: Real Solutions from Kenny Merdan of My Loan Partners
Part 2: Step-by-Step Breakdown of the Texas Cash-Out Refinance Process
While the idea of pulling equity from your home sounds simple, the cash-out refinance process in Texas involves multiple checkpoints to ensure full compliance with state law and that your loan is structured properly from day one. With the right guidance—like working with Kenny Merdan at My Loan Partners—you won’t be left wondering what comes next.
Below is a detailed, consumer-friendly guide that outlines exactly what to expect from your first phone call to the day you receive your cash.
🛠️ Step 1: Initial Consultation with Kenny
The first step is a conversation—not a sales pitch.
Kenny will ask questions about your current mortgage, financial goals, equity position, and timeline. This is where you’ll determine if a cash-out refinance makes sense for your situation and whether Texas lending rules support your desired outcome.
What You’ll Discuss:
- Your home’s estimated value
- Your current mortgage balance
- How much cash you need and why
- Credit score and monthly income
- Future goals: short- and long-term
📞 Contact Kenny Merdan at (651) 417-1085 or email kenny@applywithkenny.com
📋 Step 2: Loan Application & Required Disclosures
After your consultation, Kenny will walk you through a simple digital application. This will include uploading:
- Photo ID
- Recent mortgage statements
- Income documents (pay stubs, W-2s, tax returns)
- Homeowners insurance declarations
- Bank statements
As part of the Texas cash-out process, you’ll also receive state-mandated 12-day disclosure documents. These are not optional and must be signed before the loan can move forward.
⚠️ Texas 12-Day Rule:
From the date you sign the disclosure, a lender must wait at least 12 calendar days before you can close. This gives homeowners time to review the terms and ask questions—another reason why planning ahead is essential.
🧮 Step 3: Home Appraisal
Next comes your home appraisal. Because a cash-out refinance involves tapping into equity, the lender needs to confirm your home’s current fair market value—not just a guess from Zillow.
Kenny will coordinate this step for you, and a licensed appraiser will visit the home to conduct a full evaluation.
📊 Excel-Style Chart: Estimated Appraisal Timelines in Texas Markets
| Region | Typical Appraisal Timeframe | Average Cost |
|---|---|---|
| Dallas–Fort Worth | 4–7 business days | $450–$525 |
| Austin | 5–8 business days | $500–$550 |
| Houston | 4–6 business days | $475–$525 |
| San Antonio | 3–6 business days | $425–$500 |
| Rural Areas | 6–10 business days | $500–$600 |
Appraisal results directly impact how much cash you can receive—especially due to Texas’s 80% cap on equity extraction.
📑 Step 4: Underwriting & Loan Approval
Once your appraisal is complete and your income documentation is reviewed, Kenny’s team will submit everything to underwriting. This is where the loan is evaluated to ensure it meets all federal, state, and lender guidelines.
Typical Underwriting Review Includes:
- Verifying income and assets
- Reviewing credit scores and debts
- Confirming loan-to-value (LTV) ratio
- Ensuring compliance with Texas’s 50(a)(6) cash-out laws
💡 Texas Specific Tip: If you have previous cash-out refinances, you cannot do another one until 12 months have passed. Kenny will verify your eligibility to avoid surprises late in the process.
🏡 Step 5: Closing Day — Cash in Hand
Once the loan is clear-to-close, your title company will schedule a time for you to sign documents in person. In Texas, cash-out refinances must be closed at an attorney’s office, lender’s office, or title company—no mobile closings or remote notarizations allowed.
You’ll sign:
- Closing Disclosure (CD)
- Note and Deed of Trust
- Affidavit of Fair Market Value (Texas requirement)
💰 After a 3-day waiting period, your funds will be disbursed, usually via wire or cashier’s check. You’re now free to use your equity as you planned—whether that’s consolidating debt, starting a business, or renovating your home.
✅ Consumer-Friendly Timeline Overview
| Stage | Timeframe | Notes |
|---|---|---|
| Initial Consultation | Same Day | Talk to Kenny about your goals and eligibility |
| Loan Application & Disclosures | 1–2 Days | Must wait 12 days after signing to close |
| Home Appraisal | 4–7 Business Days | Impacts your available equity |
| Underwriting Review | 3–5 Business Days | Verifies your financial and property details |
| Closing & Disbursement | 3-Day Wait After Close | Required by law; funds disbursed on 4th day |
Why Consumers Choose Kenny for Their Refinance
🔹 Local Expertise — Kenny knows the Texas cash-out laws better than national call-center lenders.
🔹 Full Transparency — You’ll understand every step before signing anything.
🔹 Strategic Structuring — Kenny doesn’t just quote rates. He helps you maximize your equity in a way that supports long-term financial goals.
🔹 Personalized Support — You’ll always work directly with Kenny—not get passed around.
🗣️ Real Client Testimonial
“Kenny Merdan made the refinance process easier than I imagined. He helped me consolidate my credit card debt and lower my monthly payments by $900. I had no idea I could use my equity like this. He’s the real deal.”
— Briana T., Fort Worth, TX
Texas Cash-Out Refinancing Made Easy: Real Solutions from Kenny Merdan of My Loan Partners
Part 3: Real Cash-Out Refinance Scenarios from Texas Borrowers
Every refinance has a story.
What makes Kenny Merdan different is his ability to understand each borrower’s “why”—whether it’s paying off high-interest debt, renovating a growing family’s home, or funding a dream that’s been put on hold. His approach at My Loan Partners is never one-size-fits-all. It’s personal. It’s strategic. And it’s rooted in the realities of the Texas housing market.
Below, we explore three real-world scenarios that demonstrate how cash-out refinancing—when structured correctly—can become a powerful financial tool.
🧰 Scenario 1: Debt Consolidation Done Right
Client: Christina, a Teacher in Austin
Home Value: $395,000
Mortgage Balance: $265,000
Credit Card Debt: $38,000 at 23.9% APR
New Loan Balance: $316,000 (includes payoff + closing costs)
Monthly Savings: $823/month
Purpose of Refinance: Lower monthly payments, regain financial control
🎯 Strategy:
Kenny structured Christina’s cash-out refinance to eliminate all revolving credit card debt and roll in closing costs—without increasing her monthly mortgage payment by more than $150. Her new fixed mortgage rate was lower than her old rate, and she saved over $800 per month in combined payments.
📊 Excel-Style Snapshot: Christina’s Before & After
| Expense Type | Before Refi | After Refi |
|---|---|---|
| Mortgage Payment | $1,998 | $2,135 |
| Credit Card Payments | $960 | $0 |
| Total Monthly Outflow | $2,958 | $2,135 |
| Net Monthly Savings | — | $823 |
💡 Why It Worked:
Texas allows cash-out refinances up to 80% of a home’s appraised value. Kenny helped Christina stay under this threshold while eliminating financial stress.
🛠️ Scenario 2: Renovation & Resale Upside
Clients: Daryl & Jasmine, Investors in San Antonio
Home Value: $312,000
Current Mortgage: $187,000
Renovation Budget Needed: $45,000
Cash-Out Amount Approved: $59,600
Estimated Post-Reno Value: $389,000
🎯 Strategy:
Kenny helped this couple access equity for renovation without turning to high-cost bridge loans or hard money lenders. The couple used the funds to upgrade kitchen, bathrooms, and curb appeal—raising the home’s value by nearly $77,000 and setting them up for a strong resale or profitable rental conversion.
📈 Excel-Style Projection: Equity Before & After Renovation
| Phase | Home Value | Loan Balance | Equity |
|---|---|---|---|
| Pre-Reno | $312,000 | $187,000 | $125,000 |
| Post-Cash-Out | $312,000 | $246,600 | $65,400 |
| After Renovation | $389,000 | $246,600 | $142,400 |
💡 Why It Worked:
Kenny’s local lending knowledge helped structure the deal within Texas equity guidelines, and the timing of the drawdown ensured the renovation funds were available up front.
🎓 Scenario 3: College Tuition with Peace of Mind
Client: Marcus, Father in Houston
Home Value: $480,000
Current Mortgage: $299,000
Cash-Out Needed: $45,000
Purpose: Pay for daughter’s college education
🎯 Strategy:
Marcus didn’t want student loan debt to burden his daughter. He also didn’t want to completely refinance into a new 30-year loan. Kenny presented a 20-year cash-out refinance with a fixed interest rate, preserving Marcus’s equity while meeting his financial goals.
📊 Excel-Style Comparison: Student Loan vs. Cash-Out Refi
| Loan Type | Monthly Payment | Total Interest Paid (Est.) |
|---|---|---|
| Private Student Loan | $529 | $18,764 |
| Cash-Out Refinance | $315 | $12,227 |
| Total Savings | — | $6,537 |
💡 Why It Worked:
The refinance avoided the ballooning interest rates of private student loans, keeping Marcus in control of his family’s finances.
🔎 Common Threads: What All 3 Borrowers Had in Common
✔️ Texas Equity Cap Awareness
All loans stayed under the 80% equity rule, thanks to Kenny’s strategic planning.
✔️ Tailored Loan Terms
Each borrower had different timelines, goals, and financial needs—Kenny adjusted the term, rate, and structure accordingly.
✔️ High Trust, Low Pressure
Borrowers reported feeling educated and empowered—not sold to.
⭐ A Word from Kenny Merdan:
“Cash-out refinancing isn’t just about taking money out. It’s about using your equity intelligently. Whether you’re improving your home, your finances, or your future—I’ll help you build a plan that fits.”
📞 Ready to start your own scenario?
Reach out to Kenny Merdan of My Loan Partners today:
- 📍 Based in Texas
- 📞 (651) 417-1085
- 📧 kenny@applywithkenny.com
- 🌐 Visit IHaveMortgages.com
- 📄 NMLS #1504326
Texas Cash-Out Refinancing Made Easy: Real Solutions from Kenny Merdan of My Loan Partners
Part 4: Why More Texans Are Tapping Into Equity with Kenny Merdan
🧭 The Market Has Changed — So Should Your Mortgage Strategy
Texas homeowners have a powerful tool at their disposal: home equity. And in 2025, accessing that equity through cash-out refinancing isn’t just convenient — it’s strategic. Whether you’re located in Houston, Austin, Dallas-Fort Worth, San Antonio, or smaller markets like Waco or Lubbock, the opportunities to leverage your home’s value are real.
But it’s not just about timing. It’s about who guides you through the process.
That’s where Kenny Merdan comes in.
As a mortgage expert with My Loan Partners, Kenny brings the right mix of market knowledge, product access, and personalized strategy that today’s cash-out refinance borrowers need.
🧠 Why Texans Are Choosing Cash-Out Refinance Now
Let’s break down the key financial reasons homeowners across Texas are considering a refinance in 2025.
📊 Top 5 Reasons for a Cash-Out Refinance in Texas:
| Reason | % of Homeowners (2025 Estimate) |
|---|---|
| Debt Consolidation | 39% |
| Home Renovations/Repairs | 24% |
| Investment Property Purchases | 13% |
| College Tuition or Education | 11% |
| Emergency Fund / Medical Costs | 9% |
| Other | 4% |
Source: Internal My Loan Partners client analysis + statewide lender surveys.
Kenny has structured dozens of loans for each of these use cases—and can help you determine if a refinance is truly in your best interest.
🛡️ The Kenny Merdan Advantage
Working with Kenny isn’t like calling a 1-800 lender or getting lost in an app.
Here’s what sets him apart:
✅ Local Knowledge
Texas has unique mortgage laws, especially around cash-out limits (you can only borrow up to 80% of your home’s value). Kenny knows the rules and how to help you maximize within them.
✅ Transparent Process
Kenny offers no-pressure consultations, full loan comparisons, and clear timelines—so you’re never in the dark about costs, benefits, or deadlines.
✅ Partnerships That Work
Through My Loan Partners, Kenny has access to competitive rates, exclusive programs, and fast closings. His network of appraisers, underwriters, and processors make each deal seamless.
📅 Why 2025 Could Be Your Year to Refinance
Several macroeconomic shifts are making now the perfect time for a cash-out refinance in Texas:
- Rising Home Values:
Texas homes have appreciated steadily. Even homeowners who bought 3–5 years ago are sitting on substantial equity. - Stabilizing Interest Rates:
While rates may not return to pre-2022 lows, many lenders are offering special pricing incentives or ARM-to-fixed conversions that save money. - Debt Pressures Are Real:
Credit card APRs have jumped to over 22% nationwide. A refinance can dramatically reduce total interest paid over time.
📊 Example Comparison: Keeping Credit Debt vs. Cash-Out Refi
| Scenario | Monthly Payment | 5-Year Total Paid |
|---|---|---|
| Keep $30K in credit debt | $825/month | $49,500 |
| Refi to consolidate debt | $160/month | $9,600 |
| Savings | — | $39,900 |
💬 What Homeowners Are Saying
“Kenny explained every part of the refinance process. I went from stressed out about credit card bills to saving over $800 a month. I finally feel like I can breathe again.”
— Carlos G., Houston homeowner
“We took cash out to renovate our home before listing it. Not only did we raise the value, but Kenny timed everything perfectly. We had funds in hand within weeks.”
— Stephanie M., Plano investor
“It’s rare to find someone who combines expertise with actual empathy. Kenny made us feel supported throughout the refinance process.”
— Jasmine T., San Antonio homeowner
🎯 Is a Cash-Out Refinance Right for You?
Not always. And that’s exactly why Kenny’s consultation-first approach is so important.
He’ll help you weigh:
- 📈 Your current mortgage interest rate
- 🏡 Your home’s current appraised value
- 💳 Total debt and payment obligations
- 📉 Potential savings and equity preservation
And if it’s not the right move? He’ll tell you that, too.
🔑 Your Next Step Starts with a Simple Conversation
You don’t need to commit today. You don’t even need perfect credit.
You just need to ask one question:
“Am I using my home equity as smart as I could be?”
If the answer is “I’m not sure” — let’s fix that.
💬 Contact Kenny Merdan Today
📍 Based in Texas
🏢 My Loan Partners
📞 (651) 417-1085
📧 kenny@applywithkenny.com
🏁 Final Thought: Make Your Equity Work for You
Your home is likely your greatest financial asset. Don’t let the opportunity to use your equity smartly pass you by.
With the guidance of a trusted Texas lender like Kenny Merdan, you can refinance with confidence—whether you’re looking to consolidate, renovate, or elevate your financial future.
👉 Visit Cash-OutRefinance.com