The latest $fifty,000 loan are a good refinancing significantly less than 1003
2(p) Refinancing
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step one. Standard. Area 1003.2(p) defines an excellent refinancing since a close-avoid home loan otherwise an unbarred-prevent personal line of credit in which another, dwelling-shielded financial obligation obligations satisfies and you may substitute an existing, dwelling-protected personal debt duty because of the exact same debtor. Except since described from inside the remark dos(p)-dos, if or not a refinancing possess taken place hinges on regard to whether or not, based on the parties’ price and you can relevant legislation, the initial obligations obligations might have been fulfilled or changed from the a the obligations responsibility. Whether the brand spanking new lien was met is actually irrelevant. Such:
ii. A separate discover-avoid credit line you to joins and you can substitute an existing closed-prevent real estate loan is actually a good refinancing significantly less than 1003.2(p).
iii. But as discussed when you look at the comment 2(p)-2, a different sort of loans responsibility one to renews otherwise modifies this new terms of, however, that does not meet and you will change, a preexisting financial obligation obligation, is not an effective refinancing not as much as 1003.2(p).
dos. Ny State consolidation, expansion, and you may modification agreements. Where an exchange is performed pursuant to a new York State consolidation, expansion, and you can amendment agreement which is categorized because the an extra home loan significantly less than Ny Income tax Laws area 255, in a manner that the fresh new borrower owes less or no mortgage tape taxes, and you will where, but also for the latest contract, the transaction might have fulfilled the term an excellent refinancing around 1003.2(p), the order is known as good refinancing less than 1003.2(p). Continue reading →
