Mortgage Rate Refinancing
Can a first mortgage be refinanced to a lower rate if there is also an existing second mortgage?
If a homeowner has a first Mortgages and a second mortgage and would like to refinance the first mortgage on different terms, this may be – gives the current second mortgage put a monkey-key in refinancing the first?
whose second mortgage holder agrees to subordinate it can be done. heres the situation where u refi, 2nd mortgage automatically becomes the first, Therefore, watch new mortgage would be in second Lein position which would be at a higher rate than you specified on which no one will be the second space without a higher rate, therefore you are approaching the current 2: a holder to tell them what ur planning and get them to give in writing that they will subordinate themselves to the new first mortgage. they may say no, depending on how much equity ur plan to take out. understand if u standard first mortgage holders get paid first and the second gets what is left, if there isn't enough the second owner takes a risk of not getting all his money back. therefore, he can allow you to refi the balance but do not take longer equity out saying consolidate needed vacation, or just mad cash, but it does not hurt to ask I have made dozens of loans, where the second did subordinates, and only a few have refused to cooperate. gl