The Money Mustache Community

Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: charis on December 21, 2020, 08:13:03 AM

Title: Do I need to close my HELOC to refinance?
Post by: charis 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.