2(p) Refinancing

1. General. Area 1003.2(p) represent a good refinancing once the a sealed-avoid mortgage loan or an unbarred-end credit line where another, dwelling-safeguarded loans obligation touches and you can replaces a current, dwelling-protected personal debt obligation because of the exact same borrower. But once the explained during the review dos(p)-dos, whether a refinancing provides taken place varies according to regard to whether or not, based on the parties’ price and you may applicable legislation, the initial personal debt obligation might have been came across or changed by an excellent the new obligations duty. Whether or not the brand-new lien are found is irrelevant. Such:

ii. A special discover-avoid personal line of credit that suits and you may substitute a preexisting finalized-stop real estate loan are a refinancing significantly less than 1003.2(p).

iii. Except given that explained for the opinion dos(p)-dos, a special debt duty one to renews otherwise modifies the new terms of, but that does not satisfy and exchange, a current loans obligations, is not good refinancing around 1003.2(p).

2. Nyc County combination, extension, and amendment agreements. In which an exchange is done pursuant to some other York Condition integration, extension, and you will amendment arrangement which can be classified given that an extra home loan lower than Nyc Income tax Legislation section 255, such that the newest borrower owes smaller or no financial tape taxes, and you may in which, but also for the latest agreement, the order would have fulfilled the definition of an excellent refinancing around 1003.2(p), the order is known as a great refinancing below 1003.2(p). Discover and comment 2(d)-dos.ii.

step three. Current obligations duty. A closed-stop home mortgage otherwise an unbarred-prevent credit line one meets and changes a minumum of one current debt burden isnt good refinancing below 1003.2(p) unless of course the existing financial obligation responsibility (or loans) including are protected by the a dwelling. Such as for example, assume that a debtor has an existing $29,000 signed-stop real estate loan and you may obtains a separate $fifty,000 signed-stop real estate loan you to definitely satisfies and you may substitute the current $30,000 financing. 2(p). Although not, if for example the borrower gets a different $fifty,000 signed-prevent real estate loan that touches and changes a current $31,000 loan secure simply of the an individual verify, the fresh $50,000 mortgage isnt a great refinancing under 1003.2(p). See 1003.4(a)(3) and you will associated feedback to possess information on exactly how installment loans online Georgia to statement the loan function of such transactions, when they not otherwise excluded significantly less than 1003.3(c).

A new signed-stop mortgage loan you to definitely matches and you will changes a minumum of one established closed-prevent mortgage loans was an effective refinancing under 1003

4. Exact same debtor. Part 1003.2(p) provides you to definitely, regardless if all of the other requirements out of 1003.2(p) are satisfied, a shut-end mortgage loan or an open-stop credit line isnt a beneficial refinancing until an identical borrower undertakes both the present additionally the the brand new obligations(s). Around 1003.2(p), the newest same debtor undertakes the present together with the fresh obligations(s) even in the event only 1 debtor is the identical on each other financial obligation. Such as for instance, assume that a current signed-end real estate loan (obligations X) was satisfied and you will changed by a unique closed-end mortgage (duty Y). When the consumers An effective and you may B both are compelled towards the responsibility X, and only borrower B try required with the responsibility Y, next duty Y try an excellent refinancing less than 1003.2(p), just in case the other requirements away from 1003.2(p) is actually fulfilled, since the borrower B try required on one another transactions. Simultaneously, if perhaps borrower A great is actually compelled on the responsibility X, and just borrower B is actually obligated into the obligation Y, after that duty Y is not a great refinancing less than 1003.2(p). For example, think that two spouses is divorcing. In the event the one another spouses is actually motivated towards obligations X, however, only one companion is compelled toward obligations Y, next obligation Y is a beneficial refinancing not as much as 1003.2(p), and if the other standards out-of 1003.2(p) are fulfilled. At exactly the same time, only if partner An effective is motivated on responsibility X, and only lover B was motivated to the duty Y, next duty Y isnt an effective refinancing less than 1003.2(p). See 1003.4(a)(3) and associated opinions for information on how to declaration the borrowed funds purpose of such as deals, if they’re maybe not if you don’t omitted not as much as 1003.3(c).