Run break-even before you run rates
Divide total closing costs by monthly savings. Under 30 months is usually a clear yes; over 48 months rarely is, unless you are also removing mortgage insurance or shortening your term.
Rolling costs into the loan does not make them free — it moves them into your balance and extends the payback.
Compare the payment against your current affordability →Cash-out is a debt-consolidation decision
If you carry credit card or personal-loan balances at 18%–28%, converting them to a mortgage rate near 7% can cut total interest dramatically — but it converts unsecured debt into debt secured by your home.
Texas has specific rules for cash-out refinances on a homestead, including an 80% loan-to-value ceiling. Plan around that limit early.
Review the documents lenders will request →Don't forget the term reset
Refinancing a loan you are seven years into back to a fresh 30-year term can lower the payment while raising lifetime interest. A 20- or 25-year term often captures the savings without restarting the clock.