Refinancing loans originally made for more than 5 years

[kocak]

The plan permits only one loan outstanding at a time. A participant took a loan for the purchase of a primary residence a few years ago. The loan was amortized for more than 5 years.

The participant wants to add to the loan amount. Can the new amount be amortized for the remaining payment term of the first loan (more than 5 years left) even though the additional amount is not for the purchase of a primary residence?

I would think I could only amortize the additional amount for 5 years but I'm not sure. If I amortize the additional amount for only 5 years, I don't have level payments, but I think that is okay.

Note - we won't meet the requirements of 72(p) if I consider both loans outstanding at the same time. Thanks for your comments.

Michele