Subordination Options

If you have a Home Equity Loan/Line of credit and are thinking about refinancing your first mortgage, think about this.

This is really helpful for those whose 1st Mortgage is adjusting but owe more then their house is worth!  Apply today and improve your curretn situation!  Dont become a statistic.

Refinancing your first mortgage doesn't mean you have to payoff and close your home equity loan or line of credit with your current lender. We offer a subordination program for equity loans and lines of credit that may allow you to keep it right where it is.

Mortgages, or lien positions on a home, work like this. A first mortgage is a lien on your home that is in first position. A second mortgage is just that, a lien in second position on your home. When a first mortgage is refinanced if it does not payoff the second mortgage then that second mortgage could automatically move into first position subjecting the new first mortgage to be recorded in second lien position. First mortgage lenders must be in first position with their transaction and this is why most lenders will payoff the second mortgage as part of the process.

A second option on a first mortgage refinance is to request a subordination from the second mortgage holder. Essentially what this does is request that the second mortgage hold their position of second lien position during the refinance of the first mortgage. A subordination agreement is signed and recorded stating this fact if approved. This allows the new first mortgage to retain its first lien position on your title. Members who qualify for a subordination will be able to keep their home equity loan or line of credit open through the first mortgage refinancing process. That way you can maintain your great low equity rate from your current lender.

This process can help you to avoid any reimbursement of fees for early payoff on your equity loan or line of credit. At the same time it can save you money in the form of fees to establish a new equity loan or line of credit. The requirements for a subordination review are minimal and are items you have already submitted to your first mortgage loan officer. We simply need to review these items to make a final decision on your subordination request. A final decision is usually given within 3 business days depending on us receiving a complete package of information in a timely manner. Your first mortgage loan officer should be familiar with subordinations and can help to expedite the process for you by forwarding the requested information.

Keep your options and your home equity loan or line of credit open. Contact a Prime Source Capital representative today by emailing us at mail@primesourcecapital.com or by calling us at 949-310-5872 for more information on our subordination program. We are here to answer your questions and help you keep the low rate you have with your curretn lender. Get more. That's the point!