IS IT MORE ADVANTAGEOUS FOR HOMEOWNERS TO PROTECT THEIR HOME BY HAVING ONE PRINCIPAL MORTGAGE WITH ONE LENDER FOR $200,000 OR BY HAVING A PRINCIPAL MORTGAGE FOR $150,000 AND A HOME EQUITY LOAN FOR $50,000 WITH TWO DIFFERENT LENDERS? IS THERE ANY RISK BY HAVING ONE OF THE EXISTING LENDERS REFI THE ENTIRE AMOUNT ($200,000)?
State/Country relating to question: Florida
Hello, I am happy to assist you today.There is no difference for you as a homeowner whether you have one larger mortgage loan or break it up into two loans, even if they are different lenders. It is also fine to have one of those lenders refinance the entire amount, as long as you are getting a good interest rate. In the end, they both still have a mortgage document so they have a secured interest in your home. It wouldn't impact you either way in the event of foreclosure, because whatever profits there were would trickle down either to the first mortgage alone, or then to the home equity line before you would get any equity from such a sale.Thanks,Kimberly
10 years of experience in the real estate law field
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