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KJT LEGAL CORNER – March 2009
It has been great visiting with so many of the members at the district meetings and local society events. It seems like 2009 is going to be a busy year. If you have a legal concern or question regarding a general legal issue, please submit your question to me for consideration in future columns.
Question: I would like apply for a loan with the KJT. I purchased a new home about 10 years ago for $160,000.00. I currently owe approximately $120,000.00 on the mortgage and my house is now appraised at $200,000.00. I would like to borrow the difference or approximately $80,000.00.
You are describing a home equity loan. The KJT is a fraternal benefit organization. Under the Texas Department of Insurance Code, a fraternal benefit organization may not make a home equity loan. Therefore, the KJT can not loan you the additional $80,000.00.
However, if the terms (interest rate) of your current loan is less favorable (high rate or a variable rate) than a KJT loan, you may want to consider refinancing the current balance owed to your current lender ($120,000.00) with a KJT loan. The KJT may refinance the balance owed on your mortgage (a purchase money mortgage) as long as the balance owed does not include a home equity component and you are approved for the KJT loan.
Philip J. Hundl is State Attorney for the K.J.T. and a shareholder in the law firm of Wadler, Perches, Hundl & Kerlick in Wharton, Texas. State Attorney’s note: The information in this column is not intended as legal advice but to provide a general understanding of the law. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
Submit your questions for this column via email to phundl@wphk-law.com or via U.S. Mail to Wadler, Perches, Hundl & Kerlick, Philip J. Hundl, KJT State Attorney c/o KJT Legal Column, 101 W. Burleson Street, Wharton, Texas 77488.
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