Updated about 5 years ago on . Most recent reply
Refinance While I have a HELOC
I have 130K loan (4% interest) on a SFR rental. I have a $115k HELOC on this house and it is worth $315k. I was wondering if there was a way for me to refinance, just for a better rate (not for cash out), while still keeping my HELOC (and adjusting it if needed).
Has anyone refinanced there SFR while keeping a pre existing HELOC on it?
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Stephanie P.
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Stephanie P.
#5 Mortgage Brokers & Lenders Contributor
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You need to get a subordination agreement from the HELOC allowing them to stay in second place behind the new first mortgage. Your numbers look favorable for this scenario. If your CLTV was higher, I would say it won't happen.
Stephanie