Put your equity to work — with the math shown.
Refinance to a lower rate, consolidate higher-interest debt, or open a home-equity line. Two different tools for the equity in your home — here's what each actually costs.
Break your term or renew into a new one
A refinance replaces your mortgage — usually to drop your rate, pull out equity, or fold in other debt. Best when the interest saved clears the break penalty and legal costs.
- Borrow up to 80% of your home's value
- One fixed payment, lower blended rate
- Watch for the prepayment penalty to break early
A revolving line against your equity
A home-equity line lets you borrow, repay and re-borrow up to a limit — you pay interest only on what you draw. Flexible, but the rate floats with prime.
- Draw up to 65% of value (80% combined)
- Pay interest only on what you use
- Floating rate — payments move with prime
A refinance is worth it only when the numbers say so.
Breaking a mortgage triggers a penalty — often three months' interest, or an interest-rate differential that can run into thousands. The rule: refinance when the interest you save beats the cost to break, over the time you'll keep the mortgage.
| Scenario | You save | Cost to break | Verdict |
|---|---|---|---|
| Drop 0.90% on $500k, 3 yrs left | $13,100 | $4,200 | Worth it |
| Drop 0.30% on $400k, 1 yr left | $1,180 | $3,600 | Not yet |
| Consolidate $60k debt at 19% | $9,400/yr | $3,900 | Worth it |
Illustrative examples only, not advice for your situation. Break penalties vary by lender and mortgage type and can be substantial. A licensed broker can pull your exact penalty and run the break-even before you commit.
Get your real penalty, then decide.
A broker pulls the exact prepayment figure from your lender and runs the break-even against today's rates — so a refinance only happens if it genuinely puts you ahead.
- Exact penalty pulled, not estimated
- Blend-and-extend options included
- Straight answer when it's not worth it