For Advisors

When Keeping 3.5% Costs Them More

Yes, they'd give up the rate. Three reasons that's the honest trade.

Here's the conversation that stalls. Your client has a $300K first at 3.5%, a rate they'll never see again. They also have $60K of credit card debt at 25% and $40K in checking. You bring up Wealth Builder. They say, “I'm not giving up my rate.”

They're not wrong about the rate. They're wrong about what it's actually costing them.

Did You Know?

The 3.5% Hides What They're Really Paying

Run the full picture, not just the line they're looking at:

  • $300K first mortgage at 3.5% = $10,500 a year in interest
  • $60K credit cards at 25% = $15,000 a year in interest
  • Combined: $25,500 a year on $360K of debt

That's a blended cost of debt of roughly 7%. Your client doesn't have a 3.5% mortgage. They have a 7% problem with a 3.5% headline.

Did You Know?

Year One: Roughly Even. After That, the Math Tilts.

Wealth Builder absorbs both balances on day one. $300K first plus $60K of card debt = a $360K draw. At an illustrative 8% Wealth Builder rate with $40K of static offset:

  • Year-one interest: roughly $25,600, essentially the same as status quo

But every paycheck flowing through the linked checking offsets interest daily until it's spent. The average balance drops month over month. Year two costs less than year one. Year three costs less than year two. The 25% card bleed is already gone. The acceleration compounds the longer they let cash flow through the structure.

Did You Know?

30 Years vs. 9: Where the Trade Actually Pays

This is the part the 3.5% can't compete with. Wealth Builder has no prepayment penalty, and disciplined cash-flow borrowers can retire the full balance in roughly 9 to 12 years instead of 30.

Add up what your client could walk away with:

  • 25% card debt: gone on day one
  • Remaining line capacity: accessible, no interest until drawn
  • Pay down and re-draw as life requires; the equity stays workable
  • A clear path to mortgage-free in roughly 10 years instead of year 27

The 3.5% buys them a slow walk to year 27 with $60K of growing card debt riding alongside. Wealth Builder can buy them a path to year 10, debt-free.

Three layers that don't show up on a rate sheet. Use the calculator below with a real client's numbers, or pull a list this week of clients who've told you they can't refi because of the rate and are also carrying card balances. Send us their first mortgage rate and balance, CC balance, occupancy, and average checking, and we will run the full trade-off and send it back.

Run the trade-off for a real client

Plug in the actual numbers. Adjusts live as you type.

Client Inputs

First mortgage balance$300,000
First mortgage rate3.50%
Credit card balance$60,000
Credit card APR25.00%
Average checking balance$40,000

Cash that sits in the linked sweep account and offsets daily interest.

Monthly cash directed to balance$2,500

Discretionary cash flow the client applies to paydown each month.

Wealth Builder rate (adjustable)8.00%

Illustrative only. Wealth Builder is an adjustable-rate first-lien HELOC; the rate adjusts monthly with SOFR. Not a rate offer.

Status Quo (Year 1)

Keep the 3.5%

Year 1

$25,500

Combined year-1 interest cost

1st mortgage interest$10,500
Credit card interest$15,000
Blended cost of debt7.08%

Consolidated

Wealth Builder

Adjustable rate

~12.0 yrs

Estimated payoff at this cash flow

Combined draw on day 1$360,000
Year 1 interest (estimated)$24,500
Year 2 interest (estimated)$22,100
Total interest through payoff$137,600

The Honest Trade

The headline rate is 3.5%, but combined with the credit card debt the blended cost of debt is about 7.1%. Year 1 under Wealth Builder is roughly comparable to the status quo, but the disciplined cash flow at this level could retire the combined balance in about 12.0 years instead of riding both balances for 30. The trade is adjustable rate and giving up the 3.5% fixed; the benefit is liquidity, no prepayment penalty, and an accelerated path to debt-free.

Estimates only. The Wealth Builder rate is adjustable and can change monthly with SOFR.

Send us the numbers, we'll run the trade-off

Send a client's first mortgage rate and balance, CC balance, occupancy, and average checking. We'll run the full analysis and send it back to you.

This tool is for illustration only and does not provide investment, tax, or legal advice. Consult your own financial, tax, and legal advisors before making decisions.
Estimates only. Actual results depend on rates, cash flow, spending, and timing, all of which vary. The Wealth Builder is an adjustable-rate first-lien HELOC; rates and payments can change monthly with SOFR. Savings scale with the client's actual average cash balance and disciplined cash flow applied to paydown. Eligibility requirements apply, including state restrictions and underwriting criteria. The status-quo long-run figures assume the credit card balance is not paid down separately; actual carrying costs depend on the client's minimum-payment behavior. Not a commitment to lend. All loans subject to qualification. Equal Housing Opportunity.