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refinancing a HELOC in first position

Question for my fellow Zillow professionals:  If you're refinancing a HELOC, when it is the only lien on the property, is it considered a Rate & Term or Cash-Out refinance if the borrower is not taking any cash-out with the refinance on a conventional loan?  I understand it's always a cash-out refinance when paying off an existing 1st and a non-purchase 2nd lien with a conventional loan, but in this case the HELOC shouldn't be considered a 2nd because it's the only lien on the property, correct?  In this specific case the HELOC has been open for quite a few years.  If anybody has the answer to this and can provide a link to something showing this it would be greatly appreciated.  Thanks!
  • August 16 2013 - US
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Answers (1)

Most lenders will consider it a rate and term as long as there have been no draws against the HELOC for the last 12 months.
  • August 16 2013
  • 0Yes

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