2(p) Refinancing
step 1. Standard. Point 1003.2(p) defines an effective refinancing once the a close-prevent home mortgage otherwise an open-stop personal line of credit in which a unique, dwelling-secured obligations obligation meets and you will replaces a current, dwelling-safeguarded personal debt obligations of the exact same debtor. Except since described inside remark 2(p)-2, if a great refinancing enjoys happened is determined by reference to whether or not, according to research by the parties’ offer and you will applicable rules, the original loans obligations has been came across otherwise changed of the a the newest loans duty. Perhaps the original lien are came across try irrelevant. Eg:
ii. An alternate unlock-stop personal line of credit one to satisfies and you may substitute an existing finalized-avoid mortgage loan is good refinancing under 1003.2(p).
iii. But while the discussed in review dos(p)-2, a separate personal debt obligation one to renews or modifies the brand new regards to, however, that doesn’t fulfill and you will replace, a current personal debt obligations, is not a great refinancing below 1003.2(p).
2. Ny Condition consolidation, expansion, and you can modification agreements. In which a transaction is completed pursuant to a different York County integration, expansion, and you can amendment contract which can be classified while the a supplemental mortgage around New york Tax Laws part 255, in a way that the new debtor owes reduced if any mortgage recording taxes, and you will in which, however for the fresh contract, the order could have satisfied the term a refinancing around 1003.2(p), the transaction is an excellent refinancing around 1003.2(p). Find in addition to remark dos(d)-2.ii.
step 3. Current obligations obligations. A closed-prevent home loan or an open-stop personal line of credit one joins and you will changes one or more present debt obligations isnt a beneficial refinancing significantly less than 1003.2(p) except if current loans duty (otherwise obligations) and additionally is actually covered by the a dwelling. Continue reading “The latest $50,000 loan is a good refinancing significantly less than 1003”