It's a cash out refinance to pay off debt. Debt consolidation refinance rates are typically lower than rates for credit cards or personal loans.
Wondering how much cash you can pull from your home? Our Debt Consolidation Refi Professionals walk you through the options.
How does a cash out refinance debt consolidation loan work?
Step 1: Discuss how much cash you need You've got goals. We'll help you make a plan to reach them. See your choices and pick the one that works best for you. Like to DIY? Use our refinance debt consolidation calculator.
Step 2: Discover how much equity you've built We'll share a copy of your professional appraisal. Find out how much your home may be worth and how much equity you may be able to cash out to repay debt.
Step 3: Move through underwriting Share your information securely online and track your progress. Your Debt Consolidation Refinance Professional stays with you from application to closing.
Step 4: Close where and when you want We can come to your home, or meet you at our office or even a local coffee shop.
Our Debt Consolidation Refinance Professional stays with you throughout the journey, on call to answer your questions throughout the process. Call 888-966-9044 or sign up to start now!
How much equity can I borrow from my home when I refinance to pay off debt?
Homeowners with good credit: The FHA, Freddie Mac, and Fannie Mae guidelines allow borrowers with good credit to cash out up to 80% of home value.
VA home loan rules allow military service members, veterans, and spouses to cash out up to 100% of home value.
Your credit history influences how much you can borrow. If you have credit dings, your cash-out limit may be lower. Call 888-966-9044 to talk to a Debt Consolidation Refinance Professional about how the rules apply in your specific situation.
In general, when you refinance to pay off credit card debt or other high-cost debts, your monthly payment goes down. Depending on whether you stick with your current mortgage payoff date or go for a longer term, you may be making those payments longer.2
Want to pay off your mortgage faster? Our Refinance Professionals can show you how fast you’ll pay off your home loan if you apply some of your monthly savings toward your principal each month.
I want to refinance my home to pay off debt, but I don't want to start my 30-year mortgage again. Can I keep my same payoff date?
When you use the equity in your home to pay off debt, you can choose the same or different loan terms. Pick a shorter, a similar, or a longer payoff date.
For example, if you have 20 years left to go on your 30-year mortgage, you can go with a 20-year mortgage, speed up your payoff with a 15-year loan term, or extend the life of the loan back out to 30 years to get the lowest possible monthly payment.3
Want to see what your payments would be for different home loans? Our Refinance Professionals can show you. Call 888-966-9044 or sign up to start now!
What are closing costs? Do I have to pay them myself?
When you refinance and consolidate debt, you may be able to finance your closing costs or pay a higher interest rate and get a credit to cover them.
How is refinancing my mortgage different from the home loan I got to buy my home?
The biggest difference: With a refinance you get the money to pay off or pay down your existing debt (instead of bringing money to the closing table, like you did when you bought a home). Your payout will come four business days after you close (because you get three days to change your mind and unwind any home loan refinance).
You typically won't have to pay for home inspections other than possibly a termite inspection if you go with a VA cash out refinance and termites live in your part of the country (Alaskans, you're off the hook).
Other than that, the home loan process is pretty much the same.
1,2,3 A debt consolidation refinance increases your mortgage debt, reduces equity, and extends the term on shorter-term debt and secures such debts with your home. The relative benefits you receive from debt consolidation will vary depending on your individual circumstances. You should consider that a debt consolidation loan may increase the total number of monthly payments and the total amount paid over the term of the loan. To enjoy the benefits of a debt consolidation loan, you should not carry new credit card or high interest rate debt.
THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY GOVERNMENTAL AGENCY. THIS OFFER IS NOT BEING MADE BY AN AGENCY OF THE US GOVERNMENT.
Thinking about a refinance or purchase loan?
Call 888-966-9044 to talk to one of our Mortgage Loan Specialists or use our online tools below to get started.