Consolidating debt with a new purchase mortgage
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.
For example, you may decide to payoff and close multiple credit card accounts with the proceeds from your refinance.If it seems like every day brings a new credit card bill, it might be time to consider consolidating your debts with a low-interest home equity loan.With a home equity loan, you can often lower your monthly payments and spend less time paying bills.For example, some credit cards charge an interest rate of 20% or higher as compared to mortgage rates which are usually 5% or less depending on your credit score and other factors.Lowering the interest rate you pay on your combined debt, including your mortgage, reduces your total monthly debt payments and saves you money.