Can I keep my existing second mortgage or home equity line and refinance my first mortgage?
Yes, you can keep your second mortgage, that process that is employed is known as subordination. A subordination request is made to the 2nd mortgage lender, wherein they agree to allow a new first mortgage to go onto the property. There is a negative pricing adjustment to the pricing when you subordinate and the 2nd mortgage or HELOC lender will charge a fee also to review and approve the subordination.
Lastly, you could subordinate a zero-balance Home Equity Credit Line 2nd mortgage with no adverse pricing, however, you would still have to pay the subordination fee to the 2nd lender to process the request.
Please contact one of Empire’s consultants to find out more if you are interested in subordination.
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