What does it mean to subordinate a home equity line of credit or home equity loan?
Your current loan with Provident Funding holds a 1st lien position against your property. If you have obtained a 2nd lien such as a home equity line of credit or home equity loan since obtaining your existing loan currently serviced by Provident Funding, that lien holds a 2nd or junior lien position against your property. When we refinance your first mortgage and you choose to keep your 2nd lien open, Provident Funding will require the 2nd lien lender to subordinate their current 2nd lien to our new 1st mortgage so that our new first mortgage will continue to hold a 1st lien position against your property. If your home equity line of credit or home equity loan lender denies the subordination request, Provident Funding cannot refinance your loan unless you pay off and close the 2nd lien.
