As an individual or business owner, it`s possible you may have heard the term “subordination agreement” before. This type of agreement is especially common in the banking and financial industries, particularly when it comes to securing loans or mortgages.

One such financial institution that utilizes subordination agreements is Arizona Federal Credit Union. This trusted institution offers a wide range of financial products and services, including subordination agreements, to its members. But what exactly is a subordination agreement, and how can it benefit you as a borrower?

A subordination agreement is a legal document that establishes the priority of liens on a property. In simple terms, it sets out the order of who will be paid first in the event that the property is sold or foreclosed upon. With a subordination agreement, a lender agrees to become a subordinate lien holder, meaning they give up their priority position in favor of another lender. This can be especially useful when refinancing or taking out a second mortgage on a property.

In the case of Arizona Federal Credit Union, a subordination agreement can be used in several ways. For example, if you already have a mortgage with another lender on your home but need to take out a second mortgage, the credit union could become the subordinate lien holder. This would allow you to secure the second mortgage without having to pay off the first one, which can be a huge advantage if the first mortgage has a low-interest rate.

Additionally, Arizona Federal Credit Union offers subordination agreements for businesses that own property. These agreements can be used to help secure financing for a variety of purposes, such as expanding the business or investing in new equipment.

So, why choose Arizona Federal Credit Union for your subordination agreement needs? There are several reasons why this institution stands out from the competition. Firstly, their experienced team of financial experts can help guide you through the subordination agreement process, answering any questions you may have along the way. Additionally, the credit union offers competitive rates and flexible terms to ensure that their members get the best possible deal.

Overall, if you`re looking to secure financing for your home or business, a subordination agreement from Arizona Federal Credit Union could be exactly what you need. By becoming a subordinate lien holder, you can access the funds you need without having to pay off existing debts. With their commitment to exceptional customer service and competitive rates, choosing Arizona Federal Credit Union for your subordination agreement needs is a smart decision.