Is there a bank or credit union out there?

[cfin22]

We have a house that is worth about $500K. Uur first mortgage with Santander for $114,000 (3.4%) and have an equity loan with TD Bank (2.74%)  for $110,000. We are looking to take out $100K to pay down some debt and do some upgrades to the house. Is there a bank or credit union out there that would be willing to be in the 3rd spot? Our current interest rates are so low, I would rather not lose that rate. My other thought was to just bite the bullet and do a cash out refinance for the 2nd. 

[ShanetheMortgageMan]

Only lenders I'm aware of that are doing mortgages in 3rd position are private money lenders.  However, a private money lender usually only lends on non-owner occupied properties or if it's owner occupied then it must be for a business purpose (paying off personal debt or making home improvements are two examples of "personal use" that wouldn't be allowed).

You could refinance your 2nd mortgage, but 2nd mortgage rates are higher than 1st mortgage rates and since you owe more on your lower interest rate 2nd mortgage it might make more sense to refinance the 1st.  The caveat there is that the 2nd mortgage lender has to remain subordinate to the new 1st mortgage you'd obtain, meaning you have to ask them to remain in 2nd position on title, and a lot of 2nd mortgage lenders won't subordinate if you are doing a 1st mortgage cash out refinance.  You should ask TD Bank what their subordination requirements are, usually they have a checklist they'll send to you.

[Horseshoez]

@ShanetheMortgageMan, good information which should be very helpful to @cfin22.  That leads me to a question, would it be an option for @cfin22 to approach TDBank about refinancing the first?  That way they would have less of an issue at remaining subordinated for the second.

[ShanetheMortgageMan]

Could very well have a better chance with TD Bank than with other lenders.