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 malena4
Joined: 23 Jan 2007
Posts: 9
5.75 Dollars($)
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 Posted: Sat Apr 21, 2007 12:42 am Post subject: Refinance |
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| I have an 80/20 and I was wondering if the first mortgage (80) could be refinance and leave the 2nd (20) alone. My payment on the 80 is 2103.67 and on the 20 the payment is 596.00 |
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mnoel
Joined: 21 Apr 2007
Posts: 2
1.90 Dollars($)
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| Posted: Sat Apr 21, 2007 6:53 am Post subject: Refinance |
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Yes, you can refinance the first and keep your current second. The lender will have to get a "subordination agreement" from the 2nd mortgage lender- meaning once the 1st is paid off the current second technicall moves into the 1st lien position because it was recorded before your new 1st. The Subordination is the way the new 1st gets moved ahead of your old 2nd. The 2nd mortgage lender is essentially agreeing to move back into 2nd place- subordinating themselves to the new 1st.
Always consult a mortgage planner before changing your current financing to consider what your blended rate (the new first rate and second rate blended together proportionately); and consider whether you have any equity that would allow you to either improve your overall rate- or to reposition that equity so it increases your overall net worth. Always consider your retirement plans early and often.
MNoel |
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sara
Joined: 05 Jul 2006
Posts: 1060
Location: New Brunswick, New Jersey
201.30 Dollars($)
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| Posted: Mon Apr 23, 2007 12:33 am Post subject: RE: second mortgage subordination |
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Hi Malena,
Subordination agreement will help you to keep your second loan in the second lien position itself otherwise when you refinance, the new loan will get the subordinate position compared to the second loan.
I shall agree with mnoel here. It is really important to consult a mortgage planner so that you can take care of your finances while managing both the loans.
Thanks,
Sara |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1403
Location: florida
235.65 Dollars($)
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| Posted: Mon Apr 23, 2007 12:46 am Post subject: RE: Welcome message |
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Hi mnoel,
Welcome to our community.
Hope you will enjoy sharing your knowledge with our community and with the people who really need help to get over mortgage problems or to take a wise financial decision.
Hope it will be fun and at the same time it will be a learning experience for all of us here.
Caron 
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Mortgage Shopping made easy with booklet |
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kenstampe
Moderator
Joined: 22 Jan 2007
Posts: 146
Location: Dallas, TX
50.64 Dollars($)
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| Posted: Mon Apr 23, 2007 9:00 pm Post subject: |
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Just a minor tidbit...if you are in Texas there is no need for a subordination from the second lien holder. You can just refinance the first without having to get permission from the second lien holder.
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Ken Stampe is a Mortgage Loan Originator, Mortgage Author and Mortgage Loan Officer Instructor living in Dallas, TX. Contact by email at |
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