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I am in the process of trying to purchase a lot of land right side of my property for 15000 from same owner. What I need to know is if it is possible to add the land purchase into a home mortgage refinance.

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    Refinancing pays off the old mortgage and creates a new one, right? (I've never had to refinance, so am not sure.) So it seems logical, but the mortgage broker would know for sure.
    – RonJohn
    Jan 11, 2018 at 19:41
  • Will the land stay clear or do you plan on building on the land? If the latter, will it be a separate dwelling or an extension of the existing dwelling?
    – D Stanley
    Jan 11, 2018 at 19:43
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    Country? It might make a difference. Jan 11, 2018 at 19:44
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    I'm not sure I'd call a refi an "existing mortgage".
    – Beanluc
    Jan 11, 2018 at 22:32
  • I doubt the lender will want to have a single loan collateralized by two separate parcels. If not, you can have the two parcels combined into one. But there may be other reasons not to combine them, such as: 1) it might make it impossible to build a second house; 2) it might increase property taxes; 3) It might make it impossible to later sell them separately. Combining lots seems to be easier than splitting them.
    – prl
    Jan 12, 2018 at 9:48

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Depending on the lender. Only the original lender can prepare documents to modify their current collateral. Per origination the collateral pledged for the note is insured by title or an attorneys opinion letter that property is free and clear of encumbrances and judgments. Also an appraisal is provided to the lender for value to support the collateral being pledged. Therefore, in modifying the original collateral does and can have risk factors that could lead to future ramification if the process is not handled correctly. The Modification Agreements are prepared by the originator or the title folks who are insuring over the said Modification Agreement or Revised Replacement Mortgage Deed that will supercede the original recorded mortgage deed. The title company or attorney will conduct a new search on the additional land prior to any documents being prepared. Also the originators will have a new appraisal to support the new collateral. Keep in mind even though its additional land, you don't know for a fact if the land being added as good value. Again this is a lender/broker option to revised their collateral.

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