One Lower Payment Instead of Many Higher Ones
If you're juggling credit cards, personal loans, and other high-interest balances, debt consolidation through your home's equity can roll them into a single, more manageable payment — often at a significantly lower rate.
Why Consolidate Your Debt?
Lower your overall interest rate — mortgage rates are typically far below credit card and personal loan rates.
Replace multiple monthly payments with a single payment, simplifying your budget and reducing the chance of missed due dates.
Free up monthly cash flow by stretching repayment over a longer, more affordable term.
Potentially deduct the interest — mortgage interest is often tax-deductible where credit card interest is not (consult your tax advisor).
Improve your credit utilization ratio as balances are paid off, which can help your credit score over time.
Redirect the money you save each month toward savings, investments, or paying down the loan faster.
How Debt Consolidation Works
There are two primary ways to tap your home's equity to pay off higher-interest debt — we'll help you choose the right one.
Cash-Out Refinance
Replace your current mortgage with a new, larger loan and receive the difference in cash to pay off your other debts. You end up with one mortgage payment instead of a mortgage plus multiple debts.
HELOC or Home Equity Loan
Keep your existing mortgage in place and add a second loan or line of credit secured by your equity. The proceeds pay off your high-interest balances, leaving you with a mortgage plus a single, lower-rate debt payment.
The Math That Matters
The key question is simple: will the new, consolidated payment be lower than the combined payments you're making today — and will the overall interest you pay over time go down? Because mortgage rates are typically a fraction of credit card rates, consolidation often saves hundreds per month and thousands over the life of the debt. We'll show you the exact numbers for your situation before you decide.
Signs Debt Consolidation May Be Right for You
Consolidation is a tool, not a cure-all. It works best when paired with a plan to keep balances from building back up.
You're carrying balances on multiple high-interest credit cards.
Your combined monthly debt payments are straining your budget.
You've built meaningful equity in your home that you could put to work.
You're committed to not running the credit card balances back up after consolidating.
The Consolidation Process
List your debts
We gather your balances, rates, and monthly payments to see the full picture.
Compare scenarios
We run the numbers on cash-out refinance vs. HELOC so you see real savings side by side.
Choose & apply
Pick the option that fits and we move through underwriting and approval.
Pay off & simplify
At closing, high-interest balances are paid off — leaving you with one lower payment.
Frequently Asked Questions
Will debt consolidation hurt my credit score?
In the short term, applying for a new loan may cause a small, temporary dip. Over time, paying off high-balance credit cards typically improves your credit utilization ratio, which can help your score recover and grow.
Do I have to use my home's equity to consolidate debt?
No — you can also consolidate with an unsecured personal loan, though the rate will be higher than a mortgage-backed option. Using home equity generally delivers the lowest rate, which is why it's the most common approach.
What if I don't have enough equity yet?
If your home hasn't built sufficient equity, we'll look at other options — including a rate-and-term refinance that lowers your payment enough to free up cash for paying down debt on your own schedule.
Can I consolidate debt into my current mortgage without refinancing?
Not directly — to fold other debts into your mortgage, you need either a cash-out refinance or a second-lien product like a HELOC or home equity loan. We'll help you compare the costs of each.
Is the interest on a consolidation loan tax-deductible?
Interest on mortgage debt used to buy, build, or substantially improve your home is often deductible, but interest on funds used to pay off other debts may not be. Always consult a tax professional for your specific situation.
How long does the consolidation process take?
A cash-out refinance typically takes about the same time as a purchase loan, while a HELOC can sometimes close faster. We'll give you a timeline based on the option you choose.
Find Out How Much You Could Save
Bring us your balances and rates — we'll show you the consolidated payment and total interest savings you could achieve.
Get My Debt Consolidation Review