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.
