i have a mortgage and HELOC with the same CU. is it possible to refinance just the mortgage

It will depend on the value of the property and the mortgage amounts. If there is sufficient equity and the CU is willing to cooperate in subordinating their HELOC to a new first mortgage you shouldn't have an issue. However, absent the equity and/or the CU's cooperation you will be required to refinance taking both loans into consideration. Furthermore, if you are required to payoff both loans in the refinance; the new loan will be considered a cash/out refinance as opposed to a simple rate/term. Translation, you will pay a little more either upfront in points or a slightly higher interest rate.

you can refinance your current 1st mtg and subordinate the equity line since it is tied into your primary residence. You may have used the equity line to purchase theother property but the equity line is tied into your primary residence. You own your other property free & clear and you have a 1st mtg and equity line tied to your primary residence.Call me @ (804) 873-4300 to answer any other questions.ThanksChris SerafimVirginia first Mortgage

To the extent you have nough equity in the home, you can refinance your first mortgage and leave the second in place. This will require the CU currently holding the second mortgage to "subordinate" their second lien position to the new "first" mortgage you will given. Becaause lein seniority is determined by the date the lein is recorded, your second mortgage would "slide" into fist position ahead of the new mortgage without a "subordination agreement". The subordination agreement is a document issued by the second lein holder that bascially says they are goingtp remain in second or a "subordinate" position relative to the new loan, even though their lein was recorded ahead of the new one. Let me know if you have any questions. Joe Shamie 877-662-3321 x-102

Your CU is on the hook for both debts now. If you are lookling to lower the rate on the First and they are telling you you have to do both and roll them into one, that is probably a good thing. This will allow you to lock in today's low rates on all the funds that are outstanding. As to your question Why are they requiring this? It probably has to do with lending requirements as it relates to your equity position. You have a 1st and a 2nd. By law, when you refinance, the brand new mortgage becomes the 3rd. When the funds are applied to the 1st, and it's lien is released, the 2nd becomes the 1st and the 3rd becomes the 2nd. A Mortgage lender WILL NOT allow theselves to be in any position but 1st. This requires the lender to Subordinate the position of the HELOC to the New Mortgage, so that the new mortgage is treated like a 1st. Many lenders, including CUs will not subordinate, ever. This is probably why they are telling you you must combine them.

If there is a good reason not to combine the two loans into one, there are a couple other options. If you have at least 10% equity in the property ( Value - 1st mortg - HELOC) it may be possible to replace the existing HELOC either through the same CU or another lender. Or, you could consider paying it off, maybe borrow money out of a 401k? With rates so low it does make sense to look at all options. That very low payment on the HELOC may not be so small in 2 years, so the opportunity to lock in a rate in the low 4% range is definitely worth considering. - Glad to brainstorm if you would like.