2(p) Refinancing
step 1. General. Part 1003.2(p) talks of good refinancing because a shut-stop real estate loan otherwise an open-end credit line where another type of, dwelling-secure personal debt duty meets and you may changes a current, dwelling-protected obligations responsibility because of the same debtor. Except because discussed inside comment 2(p)-2, whether or not an excellent refinancing possess occurred depends upon mention of whether, according to the parties’ bargain and you can applicable rules, the first financial obligation obligations could have been came across otherwise changed of the good the new obligations duty. If the brand-new lien try found was irrelevant. Such as:
ii. An alternative discover-end credit line that suits and you can changes an existing closed-end home loan are a good refinancing not as much as 1003.2(p).
iii. Except while the described within the review 2(p)-dos, a unique personal debt responsibility one to renews or modifies the new terms of, however, that doesn’t meet and replace, a preexisting obligations duty, isnt a beneficial refinancing around 1003.2(p).
2. Nyc County is it possible to refinance a personal loan consolidation, extension, and you will amendment arrangements. In which an exchange is performed pursuant to another York County combination, extension, and you can amendment agreement and that is classified while the a supplemental financial significantly less than New york Tax Laws part 255, in a manner that this new borrower owes shorter if any home loan recording fees, and you will where, but for this new agreement, the order might have fulfilled the expression a beneficial refinancing under 1003.2(p), the order is regarded as an effective refinancing around 1003.2(p). Discover also opinion 2(d)-2.ii.
step 3. Established debt obligations. A closed-avoid home mortgage otherwise an unbarred-stop credit line you to definitely joins and substitute one or more established debt burden isnt a good refinancing not as much as 1003.2(p) unless current debt obligations (otherwise debt) plus was covered by the a home. Eg, assume that a borrower enjoys an existing $30,000 signed-avoid real estate loan and you will obtains a special $50,000 signed-end home loan you to meets and you can substitute the present $29,000 loan. 2(p). not, if for example the debtor get a special $50,000 signed-stop home loan you to matches and you will substitute a current $30,000 financing secured merely from the your own ensure, this new $fifty,000 loan is not an excellent refinancing under 1003.2(p). See 1003.4(a)(3) and relevant responses to own suggestions for you to declaration the mortgage purpose of for example purchases, if they are not or even excluded below 1003.3(c).
A special closed-prevent mortgage loan you to matches and you will replaces one or more established closed-prevent mortgages try good refinancing lower than 1003
cuatro. Same debtor. Section 1003.2(p) provides one to, though the many other criteria away from 1003.2(p) is actually satisfied, a close-avoid real estate loan otherwise an unbarred-avoid personal line of credit is not a great refinancing unless an identical borrower undertakes both present while the new obligation(s). Lower than 1003.2(p), brand new same borrower undertakes both the present together with the fresh new responsibility(s) even though only one debtor is the identical into both loans. Such as for example, believe that a current closed-stop mortgage loan (obligations X) are met and changed by the an alternative finalized-avoid home mortgage (obligations Y). In the event the individuals An excellent and you can B they are both required on the duty X, and only debtor B is actually motivated into obligation Y, upcoming duty Y are good refinancing under 1003.2(p), and when the other requirements from 1003.2(p) is satisfied, because borrower B try obligated to the one another purchases. Concurrently, if only borrower An effective try motivated toward obligation X, and only borrower B is required towards obligations Y, then duty Y isnt a refinancing not as much as 1003.2(p). Eg, assume that one or two partners was divorcing. If each other partners are required into duty X, however, only one mate try motivated for the obligations Y, next responsibility Y was an effective refinancing significantly less than 1003.2(p), of course another standards off 1003.2(p) try met. On top of that, if perhaps companion An excellent try required into the responsibility X, and just lover B is actually motivated for the duty Y, then obligations Y is not an excellent refinancing around 1003.2(p). See 1003.4(a)(3) and you may related reviews to own information on how to declaration the mortgage purpose of like transactions, if they’re perhaps not otherwise omitted lower than 1003.3(c).
