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# What is the purpose of the 'Loan is a refinance that meets the requirements set forth in Va. Code Ann. Section 55-58.3(B) in order to maintain priority' on the Document Data page?

This prompt is used for refinance transactions that secure Virginia real property and has two functions: (1) when selected, a notice required to maintain priority over an existing subordinate security interest is included in the refinance deed of trust, and (2) when not selected, the refinance deed of trust will include information required for taxation purposes.

Select, if the lien priority requirements for refinance deeds of trust set forth in Va. Code Ann. Section 55-58.3(B) are met. Please, reference this state law for detail. In summary, a refinance deed of trust must include a specific notice in order to maintain priority over an existing subordinate mortgage or deed of trust. The notice required by the statute must be placed on the first page of the refinance deed of trust, and both the refinance deed of trust and the subordinate transaction must meet specific criteria. In summary:

- The refinance deed of trust encumbers residential real estate containing not more than one dwelling unit to secure refinancing of the prior mortgage or deed of trust.
- The principal amount secured by the refinance deed of trust does not exceed the outstanding principal balance secured by the prior instrument, plus $5,000.
- The interest rate on the refinance deed of trust at the time it is recorded does not exceed the interest rate set forth in the prior instrument.
- The subordinate mortgage or deed of trust must be secured by residential real estate containing not more than one dwelling unit and must have an original principal amount not exceeding $150,000.

Do not select, if the refinance transaction does not meet the requirements for maintaining lien priority over an existing subordinate mortgage or deed of trust, or if no subordinate lien will remain on the property. The refinance deed of trust will include information required by Va. Code Ann. Section 58.1-803(E). Please, reference this state law for detail. In summary, lenders that originate refinance transactions are entitled to a tax exemption, and the refinance deed of trust must include specific information in order to take advantage of this exemption.

In both cases, the notice will include a reference to Va. Code Ann. Section 58.1-803(E), which is required by some recorders in Virginia and lets them know what recording tax rate applies to the refinance transaction for taxation purposes.