Part of what I do as a mortgage originator is review credit reports. I’m often surprised how many consumers think that a debt that has been charged off means that it has been removed from their credit history or “forgiven”. Basically, a charge off is when the creditor is writing the debt off their books for tax purposes, it is not terminating the debt owed by the borrower. Often times, the charge off may turn into a collection or be sold or assigned to a collection agency and therefore, mortgage lenders will view a charge off on a credit report as a collection. [Read more…]
Refinancing when you have an existing Second Mortgage or HELOC (Updated for 2026)
December 15, 2011 by 62 Comments
Refinancing with a HELOC or Second Mortgage (2026 Guide)
One of the most common refinance questions I’m hearing right now is:
“Can I refinance if I already have a HELOC or second mortgage?”
Short answer: Yes — but how it works depends on your situation.
If you have a home equity line of credit (HELOC) or an existing second mortgage, refinancing is absolutely possible. It just requires a little more strategy.
After more than 25 years helping Washington homeowners with their mortgages, I can tell you this: [Read more…]
Second Mortgage Subordinations May Cause Huge Delays with Refi’s
March 11, 2008 by 13 Comments
If you have a second mortgage (home equity line or fixed term), and you are not going to pay it off during a refinance; it needs to be “subordinated”. This is because of lien position with your mortgages…who gets to be first. Lien position is determined by when a document (such as a Deed of Trust) is recorded at the county. If you have two mortgages and are only refinancing the first mortgage, the second mortgage will need to be “subordinated”. [Read more…]
Home Equity Loans Offer Protection from Financial Uncertainty
January 8, 2008 by 3 Comments
While on vacation last week, I took advantage of being “unplugged” and read the Seattle Times. On the last Sunday of 2007, they featured an article on How You Can Ride Out a Recession by Teresa Dixon Murray. Teresa offers 17 easy suggestions on how to protect yourself during uncertain economic times with her top tip being:
1. If you own a house, get a home-equity line today.
It won’t cost you money unless you use the credit line. But this way, you will have access to money if you lose your job or hit an emergency. If you wait until you’ve been laid off to apply for the credit line, “good luck trying to get a loan if you’re unemployed,” said Les Szarka, president of Szarka Financial Management in North Olmsted, Ohio.
Home Equity Loans
June 3, 2007 by 2 Comments
Today I received an email from one of my clients regarding home equity loans, also known as a HELOC. Here’s part of their question:
“We keep getting info regarding a home equity loan. We want to know what a home equity loan is and if that is something for us?”
