What Questions Should I Ask My Lender Before a Cash-Out Refinance?

Ask about: max LTV, rate, closing costs, prepayment penalty, seasoning requirement, timeline to close, reserve requirements, and whether the loan is recourse or non-recourse.

• What to know: Understand the real risks of cash-out refinancing and how to protect your Houston portfolio from downside scenarios.
• Houston context: Houston has experienced market corrections (oil downturns, Hurricane Harvey) — conservative LTV and strong reserves are your best protection.
• Action step: Before committing to a cash-out refi, evaluate alternatives: HELOCs, second mortgages, business lines of credit, or even partnerships may be better fits.

Bottom Line

Cash-out refinancing carries real risk — higher payments, more leverage, and less equity cushion. Use it wisely and always maintain a safety margin in your Houston portfolio.