Cash from equity without giving up a good first mortgage: second lien or cash-out refinance
Subordination later
The short version
If you refinance your first mortgage later, the new lender will want to be first in line. The home equity line lender must sign a subordination agreement to keep its lien second. Not every lender agrees, and it can take time, so ask about the line lender's policy before you choose it.
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Ask the line lender
- Do you subordinate?
- Is there a fee?
- How long does it take?
Lien questions
What is a subordination agreement?
An agreement by the second lien lender to stay behind the new first mortgage.
Can a HELOC lender refuse to subordinate?
Yes, which can block or delay a refinance.