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# What is the purpose of the 'Loan is a first lien refinance that meets the requirements set forth in Md. Real Property Code Section 7-112 in order to maintain priority' on the Document Data page?

This prompt applies to refinance transactions that secure Maryland real property. When selected, a notice that is required to maintain priority over an existing junior lien is added to the refinance deed of trust.

The lien priority requirements for refinance deeds of trust are set forth in Md. Real Property Code Section 7-112. Please, reference this state law for detail. In summary, a refinance deed of trust must include specific information in order to maintain priority over an existing junior lien without permission from the junior lien holder. Both the refinance deed of trust and the junior lien transaction must also meet specific criteria. In summary:

- The refinance deed of trust secures the refinancing of a first mortgage or deed of trust that encumbers residential real property consisting of four or fewer units.
- The interest rate on the refinance deed of trust is lower than on the first mortgage or deed of trust.
- The principal amount secured by the junior lien does not exceed $150,000.
- The principal amount secured by the refinance deed of trust does not exceed the unpaid outstanding principal balance secured by the original mortgage or deed of trust, plus an amount not exceeding $5,000 to pay closing costs and escrow costs.