Author Topic: Do I need to close my HELOC to refinance?  (Read 139 times)

charis

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Do I need to close my HELOC to refinance?
« on: December 21, 2020, 08:13:03 AM »
So we are in the middle of a cash out refi that has taken forever. Rate expires next week. Today I was told I needed to get a subordination agreement from the bank holding our existing HELOC (0 balance) or close it out.  I'm waiting for them to call me back but some googling indicates that subordination usually involves a fee.

Is it better or faster to just close the heloc and reapply after the refi closes?

 We only use the heloc as potential EF and brief buffer if we need $$ very quickly. (It's not super important but had come in handy several times). I'm not familiar with the pros and cons here.
« Last Edit: December 21, 2020, 08:54:27 AM by charis »