Were there benefits to borrowers with a primary-lien HELOC?
The real difference issues as an additional lien are subordinate in order to an excellent basic lien. So if a borrower defaults on the a personal debt duty, the newest creditor in the first-lien updates requires consideration getting paid.
An effective HELOC will be attractive to homeowners who would like to feel capable availability its collateral using a great rotating line of credit. Property owners may wish an initial-lien HELOC over the next home loan for several factors.
- Want to use new HELOC to repay the remaining balance on the first-mortgage loan.