The second mortgage holder typically needs to approve the first mortgage refinance because they hold a subordinate position to the first mortgage. Refinancing the first mortgage could impact the second mortgage holder's position, so their consent is often required to make changes to the primary loan.
the first mortgage is collateral for the second mortgage.
Yes, but the holder of the second has to agree to it. Its called subordination. Normally when a first mortgage is paid off the second moves into the first position unless the holder agrees to "subordinate" the second. Yes, you can leave the second alone but the second mortgage company will have to allow it by signing a subordination agreement. Basically, a subordination agreement is an instrument that allows a first lien or interest to be paid off and allows another first mortgage company to come in and be the first priority lien holder.
The main benefit of a second mortgage refinance is that it allows one to not have to create a new mortgage. Creating a new mortgage can be a hassle, which a second mortgage can alleviate.
yes, but it rarely happens.
You can find information on what it means to refinance a 2nd mortgage from your potential mortgage lender. Alternatively you can try money blogs and forums.
It can be difficult to achieve but it is possible for one can refinance a second mortgage, the following companies offer such services: Bank Rate, SF Gate, Capital One.
Yes, but the holder of the second has to agree to it. Its called subordination. Normally when a first mortgage is paid off the second moves into the first position unless the holder agrees to "subordinate" the second. Yes, you can leave the second alone but the second mortgage company will have to allow it by signing a subordination agreement. Basically, a subordination agreement is an instrument that allows a first lien or interest to be paid off and allows another first mortgage company to come in and be the first priority lien holder.
The main benefit of a second mortgage refinance is that it allows one to not have to create a new mortgage. Creating a new mortgage can be a hassle, which a second mortgage can alleviate.
If she wished to retain the property. She would in all likelihood be required to refinance the property as the first mortgage holder has priority.
yes, but it rarely happens.
You can find information on what it means to refinance a 2nd mortgage from your potential mortgage lender. Alternatively you can try money blogs and forums.
It can be difficult to achieve but it is possible for one can refinance a second mortgage, the following companies offer such services: Bank Rate, SF Gate, Capital One.
The new bank in which the refinance mortgage loan has been taken from becomes the new owner of the first mortgage at the closing table. As for the second mortgage, the second mortgage holder remains the same. Before the first mortgage can close with the new lender, however, they must agree to re-subordinate the second mortgage along with their new one. It is not uncommon. I hope this information helps. Best of luck! Regards, Total Mortgage Services
When you refinance, you pay off your existing mortgage and make a new one. You might even choose to combine a primary mortgage & a second mortgage into a new loan.
There are many companies that offer 2nd mortgage refinance loans. These include Bank of America, Chase, Wells Fargo, as well as independent mortgage brokers.
No. However, in the case of a foreclosure sale (or any sale), the first lien holder will always be made whole (paid completely) before any sale proceeds are applied to the subordinate liens.
A person might seek out a second mortgage refinance loan if they are struggling with debt or monetary issues. It also lowers the amount of your monthly mortgage payment.
If the second mortgage is in default the second mortgagee can foreclose and take possession of the property subject to the first mortgage.