What happens if I have a second mortgage that I don't want to pay off with my new first mortgage?
Keeping a second mortgage open after a new refinance is called a subordination. Should you have enough equity in your home you would be able to keep that second mortgage open with its current outstanding balance.
You would just be required to have the subordination documentation completed by the financial institution that holds that second mortgage. A fee may be charged by the financial institution that holds the Note of the second mortgage.
If you are looking to Subordinate a current second mortgage with the credit union, please see the attachment below for instructions.
Back to Knowledge Base