2(p) Refinancing
1. Standard. Section 1003.2(p) represent a great refinancing while the a shut-end home loan or an unbarred-avoid personal line of credit where a unique, dwelling-safeguarded personal debt responsibility joins and you can substitute an existing, dwelling-protected personal debt obligations from the exact same borrower. But once the revealed during the opinion dos(p)-dos, whether or not an excellent refinancing has occurred is determined by regard to whether, based on the parties’ price and you may relevant law, the first financial obligation duty might have been found otherwise changed of the a this new loans responsibility. Whether or not the brand spanking new lien was came across are unimportant. Including:
ii. Another open-end line of credit you to matches and replaces a preexisting finalized-prevent real estate loan are a refinancing below 1003.2(p).
iii. But given that described inside review 2(p)-2, an alternative loans duty one to renews or modifies new regards to, but that will not fulfill and replace, an existing personal debt obligation, is not an excellent refinancing under 1003.2(p).