Free Calculator
See how much you could save by consolidating high-interest debt into a HELOC or cash-out refinance. Enter your debts below and compare your current payments against a consolidated mortgage.
| Metric | Current | Consolidated |
|---|---|---|
| Total Debt | $25,000 | $25,000 |
| Monthly Payment | $675 | $297 |
| Est. Total Interest | $12,425 | $10,611 |
| Est. Payoff Time | 6 yr 5 mo | 10 yr |
| Avg. Interest Rate | 14.95% | 7.5% |
Ready to see real rates on a HELOC or cash-out refinance for your home?
This calculator provides estimates for educational purposes only. Actual rates, payments, and savings depend on your credit profile, home value, lender guidelines, and closing costs. Consult a licensed loan officer for a personalized analysis.
Debt consolidation through your home equity means using a HELOC or cash-out refinance to pay off high-interest debts — credit cards, auto loans, personal loans — and replace them with a single lower-rate mortgage payment.
The average credit card charges over 20% APR. A HELOC or cash-out refinance typically runs at a fraction of that cost. The result: the same debts cost far less over time, and your monthly cash flow improves immediately.
The trade-off is that you're converting unsecured debt to secured debt. That means your home is now backing the consolidated balance. Most financial advisors consider this a smart move when the rate difference is significant and you're not planning to run the same cards back up — but it's a decision worth discussing with a licensed loan officer who can model your specific numbers.
Mortgage rates are typically far lower than credit card or personal loan rates — often cutting your effective rate by 10–15 percentage points.
One monthly payment instead of five. Fewer accounts to track, fewer due dates to miss, and a cleaner monthly budget.
With lower interest eating into your balance, more of each payment goes toward principal — accelerating your actual debt payoff.
| Feature | HELOC | Cash-Out Refinance |
|---|---|---|
| Rate Type | Usually variable | Fixed or adjustable |
| First Mortgage | Untouched | Replaced entirely |
| Best For | Keeping a low first-mortgage rate | Higher loan amounts, lower rate overall |
| Closing Costs | Often lower | Full refinance closing costs |
| Draw Structure | Revolving line of credit | Lump sum at closing |
Most lenders allow you to borrow up to 80% of your home's value minus your existing mortgage balance. We'll calculate exactly how much is available based on your home value and current loan balance.
Paying off revolving credit card balances can actually improve your credit score by lowering your utilization ratio. The new mortgage inquiry is a minor, temporary impact. Many clients see their scores improve within a few months of consolidating.
A HELOC keeps your first mortgage untouched. You add a second loan at the current HELOC rate without changing your existing low-rate mortgage payment. This is often the better option if your first mortgage rate is significantly below today's rates.
Yes — both HELOCs and cash-out refinances have closing costs, though HELOCs tend to have lower fees. We'll factor closing costs into your break-even analysis so you know exactly when the consolidation pays for itself.
Yes, student loan balances can be included in a cash-out refinance or HELOC. This is worth modeling carefully since you'd be converting an unsecured federal loan to a secured mortgage — there are pros and cons your loan officer can walk you through.
Get exact rates and a custom debt consolidation analysis — no commitment required.