2(p) Refinancing
step 1. General. Section 1003.2(p) describes a beneficial refinancing since a shut-avoid mortgage loan or an open-stop personal line of credit in which a separate, dwelling-covered personal debt duty suits and you may changes an existing, dwelling-safeguarded personal debt responsibility because of the same debtor. But once the explained from inside the remark dos(p)-2, whether a great http://www.clickcashadvance.com/loans/debt-consolidation refinancing features happened relies upon mention of if or not, based on the parties’ bargain and you will applicable legislation, the first financial obligation obligations might have been came across or replaced by a good brand new obligations obligations. Whether or not the brand-new lien is found is irrelevant. Like:
ii. An alternate open-avoid line of credit one meets and you will changes an existing signed-prevent mortgage loan was an effective refinancing around 1003.2(p).
iii. Except since demonstrated during the opinion 2(p)-dos, a different sort of obligations duty you to definitely renews or modifies the latest regards to, however, that will not meet and you can change, a current obligations responsibility, is not a beneficial refinancing below 1003.2(p).
dos. Ny County combination, extension, and modification arrangements. In which an exchange is completed pursuant to some other York Condition integration, expansion, and you may amendment contract which is classified as an extra mortgage not as much as New york Taxation Law section 255, in a manner that brand new borrower owes quicker or no financial tape fees, and you will in which, but also for the latest arrangement, the order could have came across the expression a good refinancing not as much as 1003.2(p), your order is recognized as a beneficial refinancing not as much as 1003.2(p). Find and additionally opinion 2(d)-2.ii.
step 3. Existing financial obligation duty. A close-prevent home loan otherwise an open-prevent personal line of credit that matches and you can replaces no less than one existing debt burden is not an excellent refinancing less than 1003.2(p) unless the existing debt responsibility (otherwise obligations) together with is actually secure by a dwelling. Eg, believe that a borrower has an existing $30,000 finalized-avoid mortgage and gets a different $fifty,000 finalized-stop mortgage loan one to matches and substitute the existing $29,000 mortgage. 2(p). However, when your borrower gets another $50,000 signed-end mortgage loan you to definitely suits and substitute a preexisting $30,000 loan covered simply because of the your own make sure, the brand new $50,000 loan isnt an excellent refinancing around 1003.2(p). Select 1003.4(a)(3) and you can associated remarks having suggestions for you to declaration the borrowed funds aim of such as for example deals, when they not or even excluded around 1003.3(c).
A different sort of finalized-avoid mortgage loan you to definitely meets and changes no less than one current closed-end mortgage loans are an excellent refinancing less than 1003
4. Same borrower. Section 1003.2(p) provides that, in the event all of the other requirements of 1003.2(p) are fulfilled, a shut-prevent mortgage otherwise an unbarred-prevent personal line of credit is not an excellent refinancing except if an equivalent debtor undertakes both the present while the the fresh obligation(s). Around 1003.2(p), brand new exact same debtor undertakes the established additionally the the responsibility(s) even in the event singular debtor is similar on the one another loans. Such as for instance, believe that a preexisting finalized-stop home mortgage (obligation X) are found and replaced because of the a separate signed-stop real estate loan (duty Y). In the event that individuals A and B both are required towards the obligation X, and simply borrower B is actually compelled toward obligations Y, up coming duty Y was an excellent refinancing not as much as 1003.2(p), assuming one other standards out-of 1003.2(p) is actually met, as debtor B was motivated to the each other purchases. While doing so, if perhaps debtor A is obligated towards the duty X, and simply borrower B is actually required towards obligation Y, next obligations Y is not a beneficial refinancing significantly less than 1003.2(p). Instance, think that one or two partners is actually divorcing. In the event that each other partners is motivated for the responsibility X, but one lover are required into the obligations Y, following responsibility Y try an excellent refinancing around 1003.2(p), and in case the other requirements regarding 1003.2(p) try satisfied. Simultaneously, if only companion A good try obligated into duty X, and only mate B was compelled on obligation Y, upcoming obligations Y is not a great refinancing not as much as 1003.2(p). Look for 1003.4(a)(3) and you may associated feedback having recommendations for you to statement the mortgage function of such purchases, if they’re not otherwise excluded around 1003.3(c).