Consolidating debt with a new purchase mortgage
If your loan balance is too high you may not be able to consolidate as much debt as you want. This the mortgage amount for your debt consolidation refinance.
Lowering the interest rate you pay on your combined debt, including your mortgage, reduces your total monthly debt payments and saves you money.
You could even improve your credit rating with a better payment record.
A home equity loan, or second mortgage, is secured by the value of your home, so the interest rate is usually much lower than a credit card. You can take advantage of lower monthly payments to pay off your debt more quickly or to save money.
Your loan proceeds pay off your current mortgage balance first, then closing costs and any remaining funds go to pay off debt.
Any proceeds that remain after paying off debt go to the borrower. Our calculator compares your combined current monthly mortgage and debt payments to a new single mortgage payment to determine how much money you can save on a monthly basis with a debt consolidation refinance.