Refinancing Mortgage Loan May Require Subordination Agreement
In light of the financial crisis some banks are covering their bases more carefully when they refinance mortgage loans. You may be asked to obtain a subordination agreement when you refinance a primary mortgage loan so it's clear that your mortgage lender has first rights to the collateral, your home, in case of default. If your home equity loan lender doesn't want to sign the subordination agreement you may have to close your home equity loan and get a new one through a different mortgage lender.