Mortgage options
Unlock the potential: refinance with precision and purpose.
From debt consolidation and home improvements to financing your child's education or planning for retirement, refinancing can be a strategic move. With the equity many homeowners have built, you can leverage up to 80% of your home's value and often lower your overall interest costs.
Refinancing: unlocking the opportunity in your home equity
There are many reasons why you might want to refinance or increase your existing mortgage: to consolidate non-mortgage debt, to finance improvements to your home, to cover university or college tuition, or to invest for retirement.
Refinancing your mortgage can be a sound financial strategy and is the most effective way to unlock equity in your home. Property values have appreciated significantly over the past several years, which opens up a wide variety of options. Did you know that you can refinance up to 80% of your home's value?
One of the greatest motivations for refinancing is lowering your interest costs. Most unsecured debt is priced by your bank at a higher rate than your mortgage, to compensate for the higher risk of loss if you default. For many people it simply makes sense to use available home equity to pay out that debt, because it typically reduces interest costs significantly. Tisha will help you decide whether refinancing makes sense for you, including the one thing most people forget to calculate: the penalty to break your current mortgage, weighed against what you save.
"If the penalty eats the savings, I will tell you to stay put. That honesty is the whole job."
Who this is for
When refinancing makes sense
Consolidating debt
Credit cards, car loans and lines of credit rolled into one lower-rate payment, with a plan to stay out of the cycle.
Renovating
Kitchens, additions, basements and backyards funded at mortgage rates instead of unsecured ones.
Funding education
Tuition and living costs for your kids, structured as a line of credit you only pay interest on as you use it.
Buying an investment or a cottage
Use existing equity as the down payment on your next property.
Separation or buyout
Refinancing to buy out a co-owner and keep the home, handled with discretion and speed.
Lowering your rate
If you are locked into a high rate from a previous term, the math on breaking early is sometimes better than you expect. Sometimes it is not. Tisha will tell you which.
How it works
How a refinance comes together
- 01
The equity check
Estimated value times 80%, minus your current balance. That is your maximum. Tisha confirms it with a lender-ordered appraisal.
- 02
The honest math
Penalty to break, legal and appraisal costs, versus the interest you save and the cash flow you free up. If it does not work, she says so.
- 03
Lender match
Not every lender prices refinances the same way. Tisha shops it across banks, credit unions and monoline lenders.
- 04
Funding
Your lawyer pays out the old mortgage and any debts you are consolidating, and the remaining funds land in your account.
How much can I borrow when I refinance?
Up to 80% of your home's appraised value, less your current mortgage balance. On a $600,000 home with a $300,000 mortgage, that is up to $180,000 in accessible equity, subject to income and credit qualification.
What is the penalty for breaking my current mortgage?
For a variable-rate mortgage it is usually 3 months' interest. For a fixed-rate mortgage it is the greater of 3 months' interest or the interest rate differential (IRD), which can be substantial at big banks. Tisha gets the exact figure from your lender before you decide anything.
Are refinance rates the same as purchase rates?
Not always. Refinances cannot be default-insured, so they are priced as conventional mortgages and may be slightly higher than the insured purchase rates you see advertised. Tisha quotes you the real refinance rate up front.
Can I refinance at renewal to avoid a penalty?
Yes. Timing a refinance to your maturity date means no prepayment penalty, which is why Tisha likes to hear from you 4 to 6 months before your mortgage comes up for renewal.
Related mortgage options
Free consultation
Find out what your equity could do for you.
Tell Tisha what you are trying to do and she will come back with options, not a sales pitch. Free, no obligation, no credit check to start.
- Over 20 years in retail banking
- Former mortgage underwriter: she knows what lenders want
- Banks, credit unions, monoline and alternative lenders
- Lender-paid on most residential mortgages