Can I refinance my mortgage without having to payoff my home equity line of credit balance?
Tags:credit cards, equity line of credit, home equity line, home equity line of credit, home equity loan,
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I have a debt & home equity line of credit with a same lender. The rate upon a equity loan is now 2.5% (prime – 3/4). we was meditative of refinancing my debt as well as receiving out a small money to compensate off a little credit cards. My subject is, if we refinance my debt do we have to compensate off a change upon my home equity loan?
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Yes, you will need to pay it off. You won’t get a refinance with an existing lien against your house.
No you don’t have to pay off the second, you just have to ask them to do a subordination. Whether or not they will in the current economy is another story, but yes it can be done.
As Professional Peon says it’s legal but difficult. Did your bank say they wouldn’t do it? If you have enough equity you could refinance and get another HELOC from another bank.
Call a few lenders and ask.
no you will not have to pay it off.but and it is a big but! banks have been trying very hard to tighten up their exposures to risks, and having a equity
line of credit now days is considered a risk.so the holder of second loan
(equity line) may not agree for subordination,even though they are the
same bank. they may also not allow you to take cash out. unless there is
substantial equity exist.your best chance is going to be refinancing with
the same lender,and before spending any money,you need to make certain
that the line of credit holder is willing to subordinate.
Yes, you can. I just did this with my Wells Fargo mortgage. It was my choice when I refinanced my mortgage whether I wanted to roll in my home equity line or keep it open. I had a decent rate (but not as great as yours–wow!) and I chose to keep it open. The bank made no big deal out of it one way or the other, and although I have pretty good credit, I had a very large balance on it, more than $350k.