1st/2nd mortgage loans; paying sour purely one? i wanted to recompense off with the sole purpose the 2nd mort

i wanted to recompense off with the sole purpose the 2nd mort (home line of credit) and my friend told me that both loans gotta be compensated at a same time or something gets violated etc. i don't return with it. i wanted to remuneration off 2nd loan and refinance next to 1st (big) loan to match my current utility :(
he said i should put down the money to refinance etc. i'm confused now. what's the operate...

You can salary off the second loan lacking creating any problems with the first mortgage.

But if you refinance the first loan, that loan will be repaid near the money you borrow with the first loan. Put another course, if you are refinancing the first loan, both loans have to be repaid.

The deal is that your friend is simply partially right. You cannot pay envelope off your first while you enjoy a second. That would make your second, your first fith oblogations that they never comitted to. Such as whom is going to do the escowel for taxes and INS?

Answers: Your friend doesn't know what he's talking going on for. You can pay sour the second anytime you want. I've never seen a second lien beside a prepayment penalty--they're illegal surrounded by most states. You don't necessarily need to put money down to refinance, but at hand will be costs involved (closing costs). Those are usually rolled into the new loan. Usually the singular out-of-pocket expense for you is the appraisal--about $325.

Rick
http://www.fairwaymortgagelending.com...

If you are refinancing, why don't you of late refinance the entire debt and pay them both past its sell-by date in the refinance? Some equity lines or mortgages own prepayment penalties, conceivably that is what your friend is referring to. A refinance would be considered a prepayment because essentially you are paying past its sell-by date that entire loan and getting a brand new loan.