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Posted by: Bob on 2010-07-11, 20:31:32
It is possible if the Home Equity lender agrees to it. When they do they agree to subordinate or remain in second position to the first mortgage that is being refinanced. Most lenders will allow this if you are just doing it to reduce the payments without taking out additional cash and you don't owe more than your home is worth. It is also typical that they charge a fee of $200 or so since there is some paperwork to review and file with the county recorder in your area. Before you do this, you should review your options. If you have enough equity you may want to look at combining your Home Equity with your first mortgage especially since rates are so low right now. If that doesn't work out, you may find it is easier to and less expensive to refinance the home equity line separately. Banks are often not in a hurry to approve and complete the subordination since they are not making money on it and it could delay the refinancing of your first mortgage causing it to be more costly. If you can improve your terms you are better off with a new loan. |
