RESOURCES

Using a home equity loan, HELOC, or cash-out refinance to pay off high-interest debt can offer several financial advantages: 

1. Mortgage-secured loans typically offer much lower interest rates than:

• Credit cards (often 20–30% APR)
• Personal loans (10–20%+) 
• Store cards or medical debt
   

This reduces total interest paid and frees up monthly cash flow.

2. One Single , Manageable Month Payment  

Consolidating multiple debts into one predictable payment:

• Simplifies monthly budgeting 
• Reduces missed or late payments 
• Lowers stress and improves financial organization

3. Lower Monthly Payments

Because mortgage terms are longer than consumer credit terms:

• Payments can drop significantly 
• Borrower often sees hundreds of dollars in monthly savings

This can improve:

• Cash flow 
• Debt-to-income ratio 
• Eligibility for future financing

Long Term Financial Impact

Renting 

• No Equity 
• 100% of payments are an expense
• Vulnerable to rent increases
• Flexibility to relocate

Buying

• Build equity through principal paydown
• Home typically appreciates 3-5% per year historically
• Borrower may refinance if rates drop
• Stable housing payment (principle & interest remain fixed).

Use this calculator to quickly estimate your monthly payment and view the amortization schedule. Optional fields include taxes, insurance, HOA dues and PMI. This is an excellent calculator to bookmark if you're house shopping

What is a mortgage? How are rates determined and more...