Why do you pay a subordination fee when refinancing, when your refinance does not include your home equity loan?
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It’s because you are not including the home equity loan in your refinance that you need a subordination agreement.
The home equity lender has to agree to re-subordinate which means they agree to remain in second position on title. Without this agreement, the refinance of your 1st mortgage will not happen.
The reason for the fee is because the 2nd lender charges to review the agreement and if approved to file the required paper work.
It’s because you are not including the home equity loan in your refinance that you need a subordination agreement.
The home equity lender has to agree to re-subordinate which means they agree to remain in second position on title. Without this agreement, the refinance of your 1st mortgage will not happen.
The reason for the fee is because the 2nd lender charges to review the agreement and if approved to file the required paper work.
Noneya | Feb 23, 2010 | Reply