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#1612996 - 10/05/11 08:56 PM Minnesota Mortgage
#12 Offline
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Joined: Jun 2005
Posts: 1,338
I have a question regarding a MN Mortgage, I'm in SD. One of the lenders at one of our branches has a home equity line of credit on a customer's home in Minnesota. At the top of the document, it states "Mortgage with future advance clause (for revolving LOC)." He wants to know if he can tie back to that mortgage if he refinances the loan into a closed end ARM product. My thought is no, as it appears it is specific to open end products, but I thought I would ask the experts.

Thanks!
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#1613110 - 10/06/11 01:08 PM Re: Minnesota Mortgage #12
RR Sarah Online
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RR Sarah
Joined: Mar 2004
Posts: 2,487
Up North
If he is refinancing the HELOC into a closed-end product, he can modify the original mortgage. If he was doing a closed end loan separate from the HELCO then he would need a new mortgage for the closed-end.
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#1613140 - 10/06/11 01:37 PM Re: Minnesota Mortgage RR Sarah
#12 Offline
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Joined: Jun 2005
Posts: 1,338
Thank you very much. That is the answer he was hoping for.

Have a great day!
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CRCM

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#1662959 - 02/09/12 08:16 PM Re: Minnesota Mortgage #12
CSB98 Offline
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Joined: Dec 2003
Posts: 1,251
Wisconsin
If we refinance a closed-end mortgage into another closed-end mortgage, can we do a modification of mortgage or do we have to satisfy the existing mortgage and do another mortgage? We are trying to save the customer some money by not having to pay the mortgage registration tax.
Last edited by CSB1; 02/09/12 08:20 PM.
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#1663042 - 02/09/12 09:44 PM Re: Minnesota Mortgage CSB98
RR Sarah Online
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RR Sarah
Joined: Mar 2004
Posts: 2,487
Up North
If there are no additional funds, you can just reference the old mortgage on the new loan docs. If you are adding additional funds, you would have to modify the mortgage to increase the mortgage amount. The customer then only has to pay mortgage registration tax on the new money.
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Sometimes you have to burn a few bridges to keep the crazies from following you.

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