[mdunker]

I trying to figure out how to disclose a simultaneous loan on the Loan Estimate. We don’t have these too often so I forget when we do get them. We are using the alternate cash to close as this is a refinance. If the new first mortgage and second are going to be paying off a larger mortgage would I subtract the amount of the payoff so that the LE shows the customer brining in zero dollars to closing as the second mortgage will be paying the rest of the original loan off?

[kowsley]

I think you are definitely on the right track. The LE for the both the first and the simultaneous second would show an Estimated Total Payoff and Payments of the full loan amount for the applicable loan as both loans are going toward paying off in full a different lien.

[Author]

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