Question by Therena: Does anyone know what resubordinate means, as in reguards to refinancing a mortgage?
Answer by ~Trey
It means that a second lien holder is kept in that particular position if the first changes in any way.
For Example, If you have a first mortgage and a second mortgage and you just refinanced the first, you would then re-subordinate the second to leave it alone.
I hope this helps
Know better? Leave your own answer in the comments!
When you refinance ONLY the first mortgage, and there’s a second mortgage on the property, it has to be checked out that the second mortgage is okay with the terms of the new first. Many times there is no issue.