Proposing a constitutional amendment increasing the amount of debt that may be secured by a homestead for purposes of refinancing a loan including those with an extension of credit guaranteed by the United States Department of Veterans Affairs.
Impact
The potential impact of SJR79 on state laws is significant. By modifying the existing provisions of the Texas Constitution related to homesteads, the bill aims to enhance the financial flexibility of homeowners. This could lead to more accessible refinancing options for families and individuals, ultimately enabling them to better manage debt and improve their financial situations. However, it is essential to evaluate how this increased leverage may affect consumers’ long-term financial stability and the risk of foreclosure under more substantial debts.
Summary
SJR79 is a proposed constitutional amendment aimed at increasing the amount of debt that can be secured by a homestead. Specifically, it seeks to allow homeowners to refinance their loans by securing debt against the fair market value of their homestead, rather than being limited to the previous cap of 80% of that value. This adjustment includes extensions of credit guaranteed by the United States Department of Veterans Affairs, which is crucial for veterans looking to leverage their home equity for financial needs.
Contention
Discussion around SJR79 might bring about notable points of contention. Supporters could highlight the amendment as a necessary adaptation to changing economic conditions, aiming to support homeowners in navigating rising housing costs and interest rates. Conversely, critics might argue that loosening restrictions on home equity could create risks for homeowners, potentially leading to increased instances of foreclosure if financial difficulties arise. The balance between offering support for refinancing and ensuring consumer protection will likely be a central focus in debates surrounding the bill.
Proposing a constitutional amendment to remove the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.
Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.
Proposing a constitutional amendment to authorize the legislature to establish a lower limit on the maximum appraised value of residence homesteads for ad valorem tax purposes and to establish a limit on the value of single-family residences other than residence homesteads for those purposes.
Proposing a constitutional amendment to authorize the legislature to establish a lower limit on the maximum appraised value of residence homesteads for ad valorem tax purposes and to establish a limit on the value of single-family residences other than residence homesteads for those purposes.
Proposing a constitutional amendment providing for an exemption from ad valorem taxation for public school purposes of a dollar amount or a percentage, whichever is greater, of the market value of a residence homestead and providing for an adjustment of the limitation on the total amount of ad valorem taxes that may be imposed for those purposes on the homestead of a person who is elderly or disabled to reflect increases in the exemption amount.
Proposing a constitutional amendment providing for an exemption from ad valorem taxation for public school purposes of a dollar amount or a percentage, whichever is greater, of the market value of a residence homestead and providing for an adjustment of the limitation on the total amount of ad valorem taxes that may be imposed for those purposes on the homestead of a person who is elderly or disabled to reflect increases in the exemption amount.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of real property for ad valorem tax purposes, to increase the amount of an exemption from ad valorem taxation by a school district applicable to residence homesteads, to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts, and to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Relating to amendments to the Uniform Commercial Code, including amendments concerning certain intangible assets and the perfection of security interests in those assets.
Relating to amendments to the Uniform Commercial Code, including amendments concerning certain intangible assets and the perfection of security interests in those assets.
Proposing a constitutional amendment providing for an exception from the limitation on the maximum principal amount of home equity loans and home equity lines of credit for the refinancing of certain loans secured by the homestead.