Can I refinance my first mortgage loan keeping HELOC with existing lender?

Asked by Tiber Sat, Santa Clara, CA Thu Feb 12, 2009

I am trying to refinance my home loan. My loan to value ratio is now 89%. I originally got first loan on 80% and rest 10% from HELOC during purchase time. Both from same credit union.
Now I am looking to refinance. Can I only refinace my first mortgage, leaving the HELOC with current lender. How canI find out?

Help the community by answering this question:

+ web reference
Web reference:


Robert Chome…, , San Diego, CA
Sat Feb 14, 2009
As the folks said below, contact your CU to see if they will allow that 2nd to be re-subordinated to a new 1st mortgage.

However, the new first has to allow your combined loan-to-value (1st + existing 2nd) to go up to 89% CLTV. This is not a given. Your new 1st mortgage will get a conservative appraisal done and they may think your house is worth less than you do, especially in this falling market. So a lot will depend on what your houses appraises for.

Also, what is your loan size? If you are in the jumbo mortgage category, the new 1st mortgage may only allow you to go up to 80% combined loan-to-value.
0 votes
Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Thu Feb 12, 2009
Tiber Sat,

If your credit union does agree to subordinate the existing HELOC to a new first mortgage, make sure that they clarify, to the degree they can, how long the subordination process will take. Whatever the time frame, be sure to accommodate it with the days you lock on any new first mortgage.

If you have any general questions, consult my blog "The Rules of Refinancing."

Let me know if I can be of service.

Rob Spinosa
0 votes
Steven Ornel…, Agent, Fremont, CA
Thu Feb 12, 2009
Hi Tiber, what you want to do is contact your Credit Union and ask if they are allowing 2nd subordinations when a first loan is refinanced. This may be quite difficult in today's market as lenders are very risk-averse.

Another option would be to ask the credit union to refinance your current first at a competitive rate, as this would make the subordination much more likely.

Best, Steve
0 votes
Keith Sorem, Agent, Glendale, CA
Thu Feb 12, 2009
Underwriting standards are tougher. I would not count on it.
Ask a lender about your options.
Shop around. You'd be surprised how much you can learn.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more