I wonder if "same subordinate position" means that the new lender is only superior up to the amount of the refinanced loan, or if the refinancing lender gets the extra $5000 in equity lien position. I think Kevin has a point. This might raise all sorts of constitutional issues including U.S. Const. Art. I, § 10 ("No State shall pass any Law impairing the Obligation of Contracts.") and U.S. Const. Amend. V and XIV (Due Process).