Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

CompanyLoan TypeAPREst. Pmt.

Subordinate Financing

[b:98f3abc95c]Subordinate Financing[/b:98f3abc95c] refers to any loan or mortgage that has a lower priority than that of the first mortgage. It is also known as simultaneous second.

[b:98f3abc95c]Facts:[/b:98f3abc95c][list:98f3abc95c][*:98f3abc95c]It is a [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] on the property which is not paid off when a new loan is taken out, and is considered when a loan is being refinanced.

[*:98f3abc95c]It is established at the same time the first lien is established and be must either paid off before closing or at closing, or should be given a lower priority than the new first lien.[/list:u:98f3abc95c]

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What will happen the the amount of the subordinate financing.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I applied to have my mortgage modified owing 343,000, it was set up to be refinanced for 145,000 with 205,000 subordinate financing. My question is, what will happen to the 205,000 and will I pay for this at some later time? Please help me understand this process, Thank You.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jun Cecilio!

As far as subordinate financing is concerned, you will have to first pay off the primary loan and then start paying the subordinate one. If its a sort of lien on the property, then the primary lien needs to be paid first and then the subordinate lien.

Thanks,

Jerry

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

when doe,s this money have to be pay back

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Though it's a subordinate lien, you will have to pay it off through regular monthly payments within a given term period.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Page loaded in 0.427 seconds.