2(p) Refinancing
1. Standard. Area 1003.2(p) describes a refinancing once the a shut-avoid home loan otherwise an unbarred-prevent personal line of credit in which another, dwelling-secured financial obligation responsibility joins and you may replaces an existing, dwelling-safeguarded debt obligations from the same debtor. But since described when you look at the opinion 2(p)-dos, if or not a great refinancing features happened will depend on regard to whether, based on the parties’ bargain and you may applicable legislation, the original personal debt obligation could have been found otherwise replaced of the good the latest personal debt responsibility. Whether the modern lien are came across is actually irrelevant. Particularly:
ii. A different sort of open-stop credit line one to matches and substitute a current finalized-prevent real estate loan are an effective refinancing less than 1003.2(p).
iii. Except because explained inside opinion dos(p)-dos, a separate obligations duty that renews or modifies the brand new terms of, but that will not meet and change, a current debt obligations, is not a good refinancing significantly less than title loans in WY 1003.2(p).
dos. Nyc County consolidation, expansion, and you will modification plans. Where an exchange is performed pursuant to a new York County combination, extension, and you will modification agreement which will be categorized because the an extra home loan around New york Income tax Legislation part 255, in a manner that the new borrower owes reduced if any home loan tape fees, and you will in which, but for the new agreement, the transaction would have satisfied the word a good refinancing lower than 1003.2(p), the order is a great refinancing below 1003.2(p). Pick as well as opinion 2(d)-dos.ii.
step three. Existing obligations obligations. A shut-stop mortgage loan or an unbarred-prevent line of credit one to suits and you may changes one or more existing debt burden isnt an excellent refinancing below 1003.2(p) until the present obligations obligation (or obligations) as well as try shielded because of the a home. Like, believe that a debtor provides a preexisting $30,000 signed-stop home loan and you can get another type of $50,000 closed-avoid mortgage loan you to definitely suits and you will replaces the current $29,000 financing. 2(p). However, in the event the debtor gets an alternate $fifty,000 signed-end home mortgage one to joins and you can substitute a preexisting $31,000 financing covered simply by the your own be sure, brand new $fifty,000 loan is not good refinancing around 1003.2(p). Look for 1003.4(a)(3) and related comments to own advice on the best way to statement the borrowed funds aim of such as transactions, if they are maybe not otherwise omitted significantly less than 1003.3(c).
Yet another closed-prevent real estate loan one to joins and you may substitute one or more established closed-avoid mortgage loans are good refinancing under 1003
cuatro. Same borrower. Part 1003.2(p) brings one to, even when all of the other standards of 1003.2(p) is actually met, a sealed-end mortgage loan or an unbarred-prevent credit line isnt an excellent refinancing except if the same borrower undertakes both the current and this new responsibility(s). Under 1003.2(p), this new exact same borrower undertakes both existing while the the fresh new responsibility(s) whether or not one debtor is similar for the both debt. Particularly, believe that an existing finalized-prevent home mortgage (obligation X) try fulfilled and you can replaced of the yet another closed-prevent mortgage loan (obligation Y). If consumers A beneficial and you will B both are compelled towards obligation X, and just debtor B are obligated towards obligation Y, up coming obligations Y is good refinancing significantly less than 1003.2(p), and in case others requirements of 1003.2(p) was fulfilled, once the debtor B try motivated towards both purchases. Concurrently, if only debtor An effective was obligated toward obligation X, and just borrower B is actually compelled to the obligation Y, upcoming duty Y is not a good refinancing around 1003.2(p). Instance, believe that one or two partners is actually divorcing. In the event that both spouses was motivated towards the obligations X, however, singular spouse try compelled towards the obligations Y, after that duty Y was an excellent refinancing not as much as 1003.2(p), if in case another requirements out-of 1003.2(p) are met. As well, only if mate Good is required towards obligation X, and just mate B was motivated towards the responsibility Y, upcoming duty Y isnt a good refinancing around 1003.2(p). Discover 1003.4(a)(3) and you may associated comments for information on how best to declaration the loan purpose of such as purchases, if they are perhaps not otherwise excluded lower than 1003.3(c).