Other times, delays or fees may surprise you. Here are some important notes about the subordination process. The Mortgagor essentially repays it and gets a new loan when a first mortgage is refinanced, so the most recent new loan is now in second place. The second existing loan becomes the first loan. The lender of the first mortgage refinancing now requires the second mortgage lender to sign a subordination agreement to reposition it as a top priority when removing debts. The best interests of each creditor are changed amicably from what they would otherwise have become. Let`s go over the basics of subordination, using a home equity line of credit (HOME EQUITY LINE OF CREDIT) as the main example. Keep in mind that these concepts still apply if you have a home loan. .