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Can i refinance my first mortgage and not my second?

I would like to refi my first to lower the payment by about $400. I want to keep the second in place because its almost half paid off. If i only refi the first then in 8 years my second is paid off instead of refinancing both and keeping the combined higher payment for 15 yrs. by stouter88 from Union City, Indiana. Jun 2nd 2011 Reply


Gianni Cerretani (mortgagegodfather)
#33 ranked lender in Georgia - 238 contributions

Execellent question: This can be done with a subordination agreement from your second lien holder. Every lender has different requirements for the subordination process so it would be wise to get with a qualified loan officer that you trust to help explore what it will take in order to refinance your first mortgage while subordinating your second lien. Subordinating a lien is a fancy way of saying that the lien will go back and remain in second lien positon with out altering the existing terms. Just FYI be prepared to pay an underwriting fee in order to have the subordination porcessed- and this fee is non-refundable no matter if they accept the subordination or decline it. Fees vary from one lender to the next. Let me know if I can help any further.

Jun 2nd 2011
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Mel Simonovich (mel4600)
#10 ranked lender in Wisconsin - 6 contributions

Yes you can, however, it would require a subordination agreement with your second mortgage holder. In this care they would probably be happy to do it since it allows more capital to be left over to help pay the second off quicker. We can help you with the entire procedure.

Jun 2nd 2011
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Larry Penilla (Larry Penilla)
#4 ranked lender in Indiana - 24 contributions

Yes, as long as your 2nd mortgage lender will allow it. It is called a subordination agreement. The lender you refinance with will require this and request it from your 2nd mortgage lender. They will charge a fee and want to review the appraisal and the terms of your new 1st mortgage to consider the subordination (keeping the 2nd mortgage in 2nd lien position while you refinance the 1st lien). Feel free to call with any add'l questions...219-865-0505 Larry @ First Mortgage Corp.

Jun 2nd 2011
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Patrick McCarthy (PatrickM)
#23 ranked lender in Ohio - 196 contributions

Hello:Yes, you can refinance your 1st mortgage and leave your 2nd alone. As mentioned above, you would need subordination permission from your 2nd mortgage lender. Most of the time, they will not allow cash out for any reason.Saving $400/mo refinancing your mortgage would require a pretty large loan with a pretty high current int rate, however. Please call me to review if it even makes sense for you to do anything at all. Patrick McCarthy, Stonegate Mortgage Corp, 614-310-7520, PMcCarthy@StonegateMtg.com

Jun 2nd 2011
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