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Barrier to mortgage refinancing: Home-equity lenders may block refinancing through a technique called "refusal to re-subordinate." The mortgage lender normally has first claim to the collateral (the home) in case of default - ahead of the home-equity lender. In a refinancing, the home-equity lender must agree to stay in that subordinate position after the refinancing is done or it won't go through. Self-defense: See if you can get f home-equity loan elsewhere...or refinance your first mortgage with the bank that holds your current home-equity loan.
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