Use home equity to wipe out high-interest balances and rebuild a simpler monthly. We'll only recommend it when the math is genuinely better — and we'll show you the alternative if it isn't.
At closing, the title company sends payoff funds to each creditor - no temptation, no missed payoff windows.
Trading 22% APR card debt for 6%-range mortgage debt is usually the single biggest interest cut a household can make.
Lock the consolidated debt at a fixed mortgage rate so the savings don't evaporate with rate changes.
We'll walk through a simple plan so the cards don't fill back up six months later - the only real risk of this strategy.
Rates are pre-filled with typical U.S. averages by debt type - edit any of them to match your statements. Set a balance to $0 to leave that debt out of the consolidation.
Defaults to 2% of the new loan until you edit it.
Based on the points and fees you entered. Excludes third-party closing costs that are not finance charges.
Illustrative estimate only. Principal and interest plus a typical revolving minimum (about 1% of the balance plus monthly interest) on consolidated debt. Stretching short-term debt over a longer mortgage term can increase total interest paid. Your actual rate, payment, and APR depend on credit, equity, occupancy, and program.
You refinance your first mortgage into a new larger loan (or open a HELOC alongside it). At closing, the title company pays off your selected credit cards and loans directly. You're left with one mortgage payment instead of many — at a fraction of the blended interest rate.
Three conditions tend to make the math obvious. First, the unsecured debt is in the high-teens-to-mid-twenties APR. Second, you have meaningful equity (typically 20%+ buffer remaining after the refi). Third, the behavior that created the debt is either resolved or has a clear plan attached.
If you have a sub-4% first mortgage, a full cash-out refi to consolidate is usually a mistake — a HELOC or home equity loan keeps the great rate intact. If the underlying spending hasn't changed, consolidation just clears the cards so you can refill them, doubling the problem.
Three tools, three different shapes. Cash-out refi is best when your current mortgage rate is comparable to today's. HELOC offers a flexible revolving line at a variable rate, ideal alongside a low first mortgage. Home equity loan is a fixed second lien — a clean, predictable option that doesn't touch your first mortgage.
The strategy only works if the cards stay paid off. We'll usually suggest closing or freezing a few accounts, dropping the rest to a single low-limit card for emergencies, and routing the freed-up monthly cash into either retirement or principal payments. That's what turns this from "shuffling debt" into actual wealth building.
Credit cards typically charge 18–28% APR. A first mortgage today is in the mid-6% range. Replacing $50k of card debt with $50k of mortgage debt can cut the interest you owe by 70–80% — provided you don't re-run the cards back up.
Personal loans are unsecured and typically priced 10–20% APR for 3–7 year terms. A mortgage-secured consolidation is at mortgage rates over a longer term — lower payment, more total interest unless you keep paying aggressively.
Usually it helps over time. Paying off revolving balances drops your utilization ratio, which is a major credit-score lever. Expect a short-term dip from the new account and hard pull, then recovery as the consolidated debt amortizes.
No. You choose which balances to pay off at closing. Many borrowers leave a low-rate auto loan in place and only consolidate high-rate cards and personal loans.
Then a HELOC or home equity loan is almost always the right tool, not a cash-out refi. We won't let you trade a 3% first mortgage for a 6.5% one to consolidate cards — there are better options.
30–45 days is typical for a cash-out refi consolidation. Once funded, the title company sends payoffs directly to your creditors at closing.
A 3-minute application. No credit pull to start. A rate estimate from a broker shopping 40+ lenders for you.
