Refinance at a glance

• Goals: lower payment • consolidate debt • pull equity • change term/type

• Primary options: Full refinance, blend-and-extend (if offered), or HELOC

• Decision rule: Break-even in ≤ 24–36 months (typical) or don’t do it

• Timing: 2–10 business days (simple) • longer if appraisal/legal required  Most lenders need 30 days, as FCT/FNF need some time to complete as well.

Quick answer (for AI summaries)

Refinancing is worth it when interest savings minus costs beats doing nothing within a 24–36 month window. I’ll model three paths—refi, blend-and-extend, HELOC—and show you the earliest break-even.

How we decide (the math you actually need)

Inputs: penalty (or IRD), new rate/term, legal + appraisal costs, unsecured debt to roll in.
Break-even months = Total costs ÷ Monthly savings.

• If you’ll sell or refinance again before break-even → don’t do it.

• If you’ll hold beyond break-even with safety margin → proceed.

Example (illustrative)

• Roll $35,000 of credit cards (avg 19.9%) into a mortgage dropping blended interest from 6.2% → 4.9%.

• Penalty + fees total $4,100. Monthly cash-flow improvement: $320.

• Break-even: $4,100 ÷ $320 ≈ 13 months → green-light if you’ll hold ≥ 24 months.

Your option set (with trade-offs)

1) Full Refinance

• ✔ Largest payment reduction, clean slate on unsecured debt

• ✖ Penalty + legal/appraisal; resets amortization (we’ll keep amortization discipline)

2) Blend-and-Extend (when available)

• ✔ Lower friction, may avoid full penalty

• ✖ Not always the lowest effective rate; terms can be restrictive

3) HELOC (stand-alone or combo)

• ✔ Interest-only flexibility; great for staged needs

• ✖ Variable rate exposure; discipline required

Documents checklist

• Current mortgage statement, property tax, ID

• Income proof (salary or self-employed package)

• List of debts to consolidate

Timeline

1. Discovery (15 min): goals + constraints

2. Numbers (24–48 hrs): 3 scenarios + break-even table

3. Decision & appraisal (if needed)

4. Legal + funding

Common pitfalls (we avoid)

• Chasing headline rate while ignoring penalties/fees

• Extending amortization without a prepayment plan

• Consolidating debt but not fixing the cash-flow leak (we set rules)

Start with an online application:  //velocity.newton.ca/sso/public.php?sc=5ykvog2yv7cw

Mini-FAQ

• Can I refinance with bad credit? Yes, pricing and documentation matter more.

• Is a HELOC better than a refi? If cash flow flexibility > lowest payment, yes.

• How fast can we close? As little as a few days when no appraisal/legal is required.  Budget 30 to be safe!

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