Why Your Refinance Will Fail Without This Document

A subordination agreement is a critical legal document required when you refinance your primary mortgage but want to keep an existing home equity line of credit (HELOC) open. Here is what you need to know:

• Purpose: It ensures your new refinance loan takes the senior or first lien position, which is a non-negotiable requirement for the new lender. Without it, your HELOC would automatically move into the first position once your old mortgage is paid off.
• Your Role: While your new lender or title company will formally request the agreement, you as the homeowner are responsible for facilitating the process. This involves communicating with your HELOC lender, providing necessary documents, paying a processing fee, and following up consistently to avoid delays.
• Necessity: You cannot refinance your first mortgage and keep your second mortgage or HELOC without a signed subordination agreement. If the agreement is denied, you will likely need to pay off and close the HELOC as part of the refinance.

Read the full blog article here: https://www.iqratemortgages.com/blog/subordination-agreements-in-miami--fort-lauderdale