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by CareyBot

DEAR BOB: I am about to refinance my property and pull out a lot of cash for future investments. But the property has an unused HELOC (home equity line of credit) that I will have to close since I would rather have $160,000 cash instead of having the HELOC subordinated. However, I am going to get hit with a $500 prepayment penalty for closing the HELOC before three years. It has been open about 1.5 years. Is there any way to avoid the prepayment penalty? – Chip C. DEAR CHIP: Let me get this straight. You don't want to pay a $500 prepayment penalty on your credit line so you can take out $160,000 in tax-free cash from your first mortgage refinance. Purchase Bob Bruss reports online. Sorry, I am not aware of any way to avoid that $500 prepayment penalty on your HELOC. Have you tried...