Equity is a tool. We show you the cost of each way to use it.
You can refinance, open a line of credit, or take a second mortgage. Each one costs something different, and the lower monthly payment is rarely the whole story. We put the total cost of each option beside the others and let you decide.
- You are paying high interest on cards or loans and own a home with equity.
- You want to renovate, help a child with a down payment, or buy a rental.
- Your circumstances changed: separation, a new business, a change in income.
- Your current lender offered a refinance and you want a second opinion.
Estimate your penalty
Three months’ interest versus interest rate differential, with the difference explained.
Open the calculator- Your home’s current value, usually confirmed by an appraisal, and your remaining balance.
- The limit: a refinance can go up to 80% of the value; a HELOC portion up to 65%.
- Your income and debts, qualified at the stress-test rate on the new, larger amount.
- What the money is for. Consolidating debt, renovating and investing are all acceptable reasons.
- The penalty to break your current mortgage, which the lender does not pay for you.
- We calculate the penalty first. If it is large, we look at whether a blend, a second mortgage or waiting for renewal beats breaking the mortgage.
- We show the total cost over time, not just the new monthly payment, so a debt consolidation that stretches $30,000 over 25 years is seen for what it is.
- We compare a refinance against a HELOC honestly. A line of credit is flexible; it is also easy to run back up.
- We check whether your current lender will match, because sometimes staying is the cheaper answer.
A homeowner has $38,000 on cards and a line at 20% and 9%, a home worth $620,000, a balance of $360,000 and two years left on a fixed term.
Refinancing to $400,000 clears the debts and cuts total monthly payments by about $900. The penalty is roughly $4,800 and the new amortization is reset. We also show the alternative: keeping the mortgage, adding a $40,000 second mortgage for two years, then folding it in at renewal. Lower penalty, higher rate on the small piece. The homeowner chooses with the full numbers in front of them.
Illustrative only. Penalties depend on your lender’s formula and rates on the day. Constants verified 2026-09-16.
Have these ready and the first meeting does the work of three.
Send them through our secure application, never by regular email.
- Current mortgage statement and the penalty quote from your lender
- Statements for the debts you want to consolidate
- Income documents, as for a purchase
- Property tax bill and home insurance
- Appraisal, arranged once we have chosen the route
How much can I refinance?
Up to 80% of your home’s appraised value, minus what you owe. On a $600,000 home with a $350,000 balance, that is up to $130,000.
What is the penalty to break my mortgage?
Three months of interest for most variable mortgages. For fixed mortgages it is the greater of three months’ interest and the interest rate differential, which each lender calculates its own way. Ask your lender for a written quote; we check it.
Is a HELOC better than a refinance?
It depends on how you will use the money. A HELOC suits money you draw and repay in stages, like a renovation. A refinance suits a one-time need with a fixed payment plan. We show both.
Should I consolidate debt into my mortgage?
Often it lowers the monthly cost and the interest rate, and often it lengthens how long you pay. We show the total interest each way, and suggest keeping the payment up after consolidating so the saving is real.
Talk to us about your situation.
A first conversation costs nothing. Bring the questions; we bring the numbers.
Cristina
Newcomers on work permits or PR, first-time buyers, renewals and refinances.
English · Español
Juan
First-time buyers, self-employed income, and files a bank has already declined.
English · Español
Sheryl
First-time buyers, self-employed professionals, refinancing and home equity.
English
First-time buyers
Down payment, programs, pre-approval and what happens after your offer is accepted.
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Work permit, PR or citizen: which lenders accept your status and your income history.
See the stepsSelf-employed
Your tax return is not your income. We show lenders the business behind it.
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