Irwin Home Equity
We are trying to refi our house and we have a equity line of credit
with Irwin Equity. They are telling us that we cannot refi our 1st
mortgage.
With the refinanced amount, we will pay off the Equity line of credit
down to $0.
Can they legally do that?
In many areas first trust deed to record is first in line (and second
is second etc). When you pay off your 1st, your 2nd HELOC becomes the
1st. Your refi becomes a 2nd. You could contact Irwin Equity and see
if they will subordinate the HELOC to 2nd position after the refi
(rather than having you cancel it). This is not uncommon.
If the lender who holds your home equity line is OK with it then it's
legal. Be sure they don't have any pre payment penalties though.
Sometimes they can be pretty steep.