02/03/2026
IS IT TIME TO REFINANCE
When you refinance your property, you can access up to 80% of your home’s value in a new mortgage. Using this equity can be an effective way to consolidate consumer debt, complete renovations, or fund a major purchase.
Here’s a recent refinance scenario I helped a client with this week:
The clients purchased their home 10 years ago. Today, it is worth approximately $500,000, and they currently owe $245,000 on their mortgage.
In addition to their mortgage, they had two auto loans, two lines of credit, and two credit cards, totaling $104,000 in consumer debt. Their combined monthly payments (mortgage, loans, and credit cards) added up to $3,603.
Their goal was to eliminate their consumer debt and finally finish their basement renovation.
By refinancing and accessing their home’s equity, we set up a new mortgage of $380,000. This allowed us to pay off the existing mortgage, clear all consumer debts, and leave the clients with approximately $31,000 in cash to complete their basement.
After the refinance, the mortgage became their only debt, with a new monthly payment of $2,040. This reduced their monthly payments by over $1,500 and provided the funds needed to complete their renovation.
Refinancing isn’t the right solution for everyone, but if this situation sounds similar to yours, feel free to reach out. We can review the numbers together and see if it makes sense for you.
