Another Mortgage Renewal Q

[w_man]

Hey Guys,

Hope this question hasn't already been asked but I was wondering if anyone here has gone through a similar scenario.

One of my properties is up for mortgage renewal ... I have a mortgage as well as a HELOC for this property. Now the problem is that we took out the HELOC a couple of years ago when property value was roughly 30k higher than what it is today ... the HELOC is being used of course towards other investments and will be tied up when my mortgage will be up for renewal in a month or so.

The question is ... if I stay with the existing bank, will they send another appraiser out to appraise the property and then adjust the HELOC at the time of renewal? Potentially reducing the HELOC to work with the current value of the house and either ask me to pay off the remainder or transfer the remainder to a personal line of credit (with higher interest). I have actually never had a chance to renew any of my mortgages, always ended up selling the property before a renewal so this is my first time. BTW, this mortgage is with TD.

Hope I explained it properly ... thanks for any help.

[el-nino]

Hey W Man,
In most cases, if you stay with the same lender, they will not send out an appraiser. They will send out an appraiser if you were pulling more money out or closing the HELOC. However, if you were to switch Banks, some lenders will require you to close out both 1st mortgage and HELOC.
I hope that helps!

[w_man]

thanks el-nino .. that helps a great deal.