Can you refinance your mortgage and keep your HELOC?

Yes, usually. The HELOC lender has to agree to stay in second place behind your new first mortgage.

Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated October 28, 2026

How subordination works

1. Your new lender requests subordination from the HELOC lender.
2. The HELOC lender reviews the new loan amount and your equity.
3. It signs an agreement, sometimes for a fee, often with a cap on the new loan.

If the lender refuses

• Pay off and close the HELOC in the refinance.
• Fold the HELOC balance into a cash-out refinance.
• Open a new HELOC after the refinance closes.

Step by step

1. Tell your refinance loan officer you have a HELOC and want to keep it.
2. The new lender sets the combined loan-to-value it will accept, often counting the full HELOC limit, not just the balance.
3. Your loan officer or title company sends a subordination request to the HELOC lender with the new loan's details.
4. The HELOC lender reviews it, may order its own valuation, and signs the agreement, usually for a fee of $0–$300.
5. The agreement is recorded with the new mortgage at closing.

Common HELOC lender conditions

• The new first mortgage can't be larger than the old one plus closing costs (no cash-out), or only modestly larger.
• Combined debt must stay under the HELOC lender's cap.
• The line can't be in default or frozen.

Example

You owe $410,000 at 7.5% and rates have dropped. Your $80,000 HELOC has a $20,000 balance. A new $410,000 loan at a lower rate, with the HELOC subordinated, keeps your line available. If the HELOC lender refuses, you can pay off and close the line at the refinance and open a new one afterward.

Timing

Subordinations commonly take two to four weeks. Request it as soon as your refinance is approved, and lock your rate for long enough to cover it.

Checklist

• Tell the refinance lender about the HELOC up front.
• Get your HELOC's limit and balance.
• Ask the HELOC lender's subordination fee and turnaround.
• Lock your rate long enough to cover the subordination.

Related question: HELOC after refinancing

Also asked

Can I refinance with cash out and keep my HELOC?

Sometimes. Some HELOC lenders subordinate to a cash-out refinance within limits, while others only subordinate to no-cash-out refinances, so ask your HELOC lender early.

Does subordination affect my HELOC rate?

No. Subordination doesn't change your HELOC rate or the other HELOC terms; it only confirms that the line stays in second position behind your new first mortgage.

What if the subordination takes too long and my rate lock expires?

Ask your refinance lender for a lock extension, which may cost a fee. Starting the subordination request early is the best protection.

Can your new mortgage lender pay off the HELOC instead?

Yes. If you'd rather not deal with subordination, you can include the HELOC payoff in the refinance, which may make it a cash-out refinance with different pricing.

Do I need to close the HELOC if I pay it to zero at refinance?

Not necessarily. You can keep a zero-balance HELOC open after the refinance if the HELOC lender agrees to subordinate, so the line stays available without reapplying later.

Does a HELOC's full limit count against a new mortgage refinance?

Often, yes. Many lenders count the HELOC's full credit limit in combined loan-to-value when you refinance, even with a zero balance, not just what you've drawn.

What does HELOC subordination cost?

HELOC subordination commonly costs $0 to $300, plus any appraisal the HELOC lender orders, and some lenders charge nothing for existing customers. Ask early so the fee and timing are in your refinance plan.

Should I close my HELOC instead of subordinating?

Only if you no longer need the line. Paying off and closing the HELOC at the refinance is simplest when the subordination fee or timing is a hassle. If you want the line for emergencies or future projects, subordinating keeps it open without reapplying later.

More in HELOC guides

• What is a HELOC?
• HELOC requirements
• When the draw period ends
• How HELOC interest is calculated
• HELOC pros and cons
• Is a HELOC a bad idea?
• How to get a HELOC
• Does a HELOC show on your credit report?

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