Refinancing your mortgage

Most lenders refinance up to 80% of your home's appraised value, minus what you already owe. That limit includes any home equity line of credit secured on the property. You also need to qualify at the stress test rate.

It can be when high-interest debt costs more than the penalty and fees to refinance. Moving credit card debt into a mortgage lowers the rate but spreads it over more years, so the total interest matters. We lay out both numbers side by side.

On a variable mortgage, the penalty is usually three months' interest. On a fixed mortgage, it is usually the greater of three months' interest or the interest rate differential. Lenders calculate the differential in different ways, so ask for the exact figure in writing.

A home equity line of credit is a revolving line of credit secured by your home. Combined with your mortgage, it can reach up to 80% of your home's value, and the line itself is usually limited to 65%.

Sometimes. Banks usually need good credit, but some alternative and private lenders focus more on your equity. The rate and fees are higher, so the plan should include getting back to a regular lender.

Yes, but you usually pay a prepayment penalty to break the current mortgage. Some lenders let you blend your current rate with a new one when you add funds, which can reduce or avoid the penalty.