Can I Refinance a first Mortgage and not the secondMay I refinance a first mortgage and not a second?
It is possible to cut your home ownership costs by funding your mortgage. Obviously, some home owners have home equity line of credit over and above the first mortgage. Since rights of lien on real estate securities take precedence, it can be somewhat difficult to refinance a first mortgage without also funding an already established homeowner line of credit. However, the mortgage is not always refinanced by a mortgage.
The majority of house owners cannot disburse and shut down their homes when they refinance their first mortgage. Also, many home owners cannot refinance their first mortgage and disburse themselves and then lock their homes with "cash out" income from their funded first mortgage. In general, if you want to refinance your first mortgage without having to refinance your Haloc later, you need what is known as "lien subordination".
Basically, you must ask your HELOC creditor to make his pledge junior your funded first mortgage. The subordinated pledge arises if the holders of the pledge undertake to place their own pledges behind further subordinate pledges on the security of a real estate. The mortgage bank will probably not refinance your mortgage if it is not the oldest holder of the right of pledge on the security of your home.
Enforcement means that the holders of the right of pledge are disbursed by years of service, which is why mortgage providers require older security items. Pledge holders also do not have to consent to the pledge submission, but your HELOC creditor will understand it, so when you refinance your mortgage you will use it. There is no need to refinance your first mortgage with the same mortgage provider.
As a matter of fact, you can refinance your mortgage with any creditor willing to refinance it. Unless you think your HELOC creditor agrees to subject his pledge to a funded first mortgage, ask your HELOC creditor to refinance that mortgage himself. When you refinance your first mortgage, your HELOC creditor takes the first and second position on the security of your home.
There are several different ways in which you can persuade your HELOC creditor to assign his pledge to your hoped-for mortgage. When your home has depreciated in value, it can be hard to obtain the submission of a HELOC creditor. HELOC creditors also sometimes demand that loans be paid with lines of credit closed before subordinating their pledges.
It may also be necessary for you to file a pledge submission packet to your HELOC creditor, along with an enrollment filing charge.