Subordinate or not

[donaldduckmoore]

I have a first and the second loans on a property. they were from the same lender. Now I want to refi on the first from another lender because they have better rate and keep the second but the original lender refuses to do so. So that I can either refi from the original lender or refi both from other lenders. Is it possible for the original lender to have such a limitation and where was it written? Second, is there anyway to argue with them so that I can be released and find another lender for my first loan? Thanks.

[urbanrealtor]

This is off the top of my head but I think there is a maximum limit of 3 years before changing loans will give you a penalty. Still lots of loans are written with a 5 year prepay penalty.

The real issue i think is that most lenders will not do second loans anymore.

Also I don’t know if the you can just replace a first loan.

I recommend asking HLS.

[urbanrealtor]

This is off the top of my head but I think there is a maximum limit of 3 years before changing loans will give you a penalty. Still lots of loans are written with a 5 year prepay penalty.

The real issue i think is that most lenders will not do second loans anymore.

Also I don’t know if the you can just replace a first loan.

I recommend asking HLS.

[urbanrealtor]

This is off the top of my head but I think there is a maximum limit of 3 years before changing loans will give you a penalty. Still lots of loans are written with a 5 year prepay penalty.

The real issue i think is that most lenders will not do second loans anymore.

Also I don’t know if the you can just replace a first loan.

I recommend asking HLS.

[urbanrealtor]

This is off the top of my head but I think there is a maximum limit of 3 years before changing loans will give you a penalty. Still lots of loans are written with a 5 year prepay penalty.

The real issue i think is that most lenders will not do second loans anymore.

Also I don’t know if the you can just replace a first loan.

I recommend asking HLS.

[urbanrealtor]

This is off the top of my head but I think there is a maximum limit of 3 years before changing loans will give you a penalty. Still lots of loans are written with a 5 year prepay penalty.

The real issue i think is that most lenders will not do second loans anymore.

Also I don’t know if the you can just replace a first loan.

I recommend asking HLS.

[SD Realtor]

ddm have you reviewed your loan documents from both loans to see what sort of restrictions there are on them? If your lender told you no then the loan docs should clearly state what the limitations are.

[SD Realtor]

ddm have you reviewed your loan documents from both loans to see what sort of restrictions there are on them? If your lender told you no then the loan docs should clearly state what the limitations are.

[SD Realtor]

ddm have you reviewed your loan documents from both loans to see what sort of restrictions there are on them? If your lender told you no then the loan docs should clearly state what the limitations are.

[SD Realtor]

ddm have you reviewed your loan documents from both loans to see what sort of restrictions there are on them? If your lender told you no then the loan docs should clearly state what the limitations are.

[SD Realtor]

ddm have you reviewed your loan documents from both loans to see what sort of restrictions there are on them? If your lender told you no then the loan docs should clearly state what the limitations are.

[HLS]

The simple explanation is that a current 2nd lender does not have to agree to allow a new 1st to be replaced ahead of it.Subordination.

Even HELOC’s that have a zero balance are already recorded as a 2nd up the maximum amount of your line.

These normally need to be paid off and/or closed when you refi to a new 1st. You can get a HELOC again after you close on the new 1st.

If you are taking cash out from the refi to pay off the HELOC, you are subject to cash out refi pricing which is usually a higher cost/rate unless you have 40%+ equity OR the HELOC balance was used to purchase the property. (non recourse, acquisition debt)

1st Loans may also price out differently when you have a 2nd behind them.

This has nothing to do with prepay penalties or length of time that 2nd has been there.

There still are lenders for fixed 2nds. My best will only loan up to a max of 75% (in CA) including an existing 1st.

That was the simple answer. A particular situation could be more complicated… HLS

PS: You can argue with them for as long as you want.

[HLS]

The simple explanation is that a current 2nd lender does not have to agree to allow a new 1st to be replaced ahead of it.Subordination.

Even HELOC’s that have a zero balance are already recorded as a 2nd up the maximum amount of your line.

These normally need to be paid off and/or closed when you refi to a new 1st. You can get a HELOC again after you close on the new 1st.

If you are taking cash out from the refi to pay off the HELOC, you are subject to cash out refi pricing which is usually a higher cost/rate unless you have 40%+ equity OR the HELOC balance was used to purchase the property. (non recourse, acquisition debt)

1st Loans may also price out differently when you have a 2nd behind them.

This has nothing to do with prepay penalties or length of time that 2nd has been there.

There still are lenders for fixed 2nds. My best will only loan up to a max of 75% (in CA) including an existing 1st.

That was the simple answer. A particular situation could be more complicated… HLS

PS: You can argue with them for as long as you want.

[HLS]

The simple explanation is that a current 2nd lender does not have to agree to allow a new 1st to be replaced ahead of it.Subordination.

Even HELOC’s that have a zero balance are already recorded as a 2nd up the maximum amount of your line.

These normally need to be paid off and/or closed when you refi to a new 1st. You can get a HELOC again after you close on the new 1st.

If you are taking cash out from the refi to pay off the HELOC, you are subject to cash out refi pricing which is usually a higher cost/rate unless you have 40%+ equity OR the HELOC balance was used to purchase the property. (non recourse, acquisition debt)

1st Loans may also price out differently when you have a 2nd behind them.

This has nothing to do with prepay penalties or length of time that 2nd has been there.

There still are lenders for fixed 2nds. My best will only loan up to a max of 75% (in CA) including an existing 1st.

That was the simple answer. A particular situation could be more complicated… HLS

PS: You can argue with them for as long as you want.

[HLS]

The simple explanation is that a current 2nd lender does not have to agree to allow a new 1st to be replaced ahead of it.Subordination.

Even HELOC’s that have a zero balance are already recorded as a 2nd up the maximum amount of your line.

These normally need to be paid off and/or closed when you refi to a new 1st. You can get a HELOC again after you close on the new 1st.

If you are taking cash out from the refi to pay off the HELOC, you are subject to cash out refi pricing which is usually a higher cost/rate unless you have 40%+ equity OR the HELOC balance was used to purchase the property. (non recourse, acquisition debt)

1st Loans may also price out differently when you have a 2nd behind them.

This has nothing to do with prepay penalties or length of time that 2nd has been there.

There still are lenders for fixed 2nds. My best will only loan up to a max of 75% (in CA) including an existing 1st.

That was the simple answer. A particular situation could be more complicated… HLS

PS: You can argue with them for as long as you want.

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