refinancing a principle loan, but not home equity loan, why would we have to pay a subordination fee?
Tags:home equity loan, refinancing,
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Why do we compensate the mastery price when refinancing, when your refinance does not embody your home equity loan?
Related solution post:
- Can a person refinance a home equity loan, as opposed to a refinancing a mortgage? ?
- My tax value on my home has increased. Should I refinance my first loan and add the home equity loan?
- if i take out a home equity loan now will this loan affect me if i want to refinance my mortgage.?
- Home equity loan or refinance existing home loan?
- Should extra payments to a home equity loan be applied to the principle or to both the principle & interest?
It’s because you are not including the home equity loan in your refinance that you need a subordination agreement.
The home equity lender has to agree to re-subordinate which means they agree to remain in second position on title. Without this agreement, the refinance of your 1st mortgage will not happen.
The reason for the fee is because the 2nd lender charges to review the agreement and if approved to file the required paper work.