DEAR BOB: My wife and I have a first mortgage at 7.5 percent interest. We can refinance for around 6 percent, resulting in huge savings. But our problem is we have a $100,000 home equity credit line at one-quarter percent below the prime rate. We like this home equity loan very much because of its flexibility. It's great to write a check for $20,000 or so when we need something. Then when we have surplus cash, we pay down the home equity credit line. It's great. Is there any way we can refinance our first mortgage without touching the home equity loan? – Royce R. DEAR ROYCE: Yes. That's easy. Just ask your home equity credit line lender to "subordinate" that second mortgage to a new first mortgage. Most home equity lenders will be glad to do so because they don't want to lose you as...
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