Rolling credit cards and loans into your home loan can lower your monthly payment. But a longer loan can mean more interest in the end. List your debts to see both numbers.
Example debts are filled in. Change them to yours, or add more.
A cash-out refinance pays off your current mortgage too, so we need it here.
For each debt, we figure out how long it takes to pay off at the payment you make now, and how much interest you pay along the way. Then we add up all your debts, plus any closing costs, into one new loan and find its payment.
If you pick a cash-out refinance, your current mortgage is paid off and folded into the new loan too. That matters a lot if your current mortgage rate is low.
The "total interest" for the new loan includes the closing costs you add to it. HELOC rates usually change over time, and many HELOCs start with interest-only payments. This tool uses one fixed rate and a regular payment to keep things simple.
A $5,000 credit card at 18% with a $200 monthly payment takes 32 months to pay off and costs about $1,314 in interest. A $35,000 loan at 8.5% over 10 years has a payment of about $433.95 a month.
It can be. It may lower your rate and your monthly payment. But the debt is now tied to your home, and paying it over more years can cost more interest. Run both numbers before you decide.
A cash-out refinance replaces your mortgage with a new, bigger one and gives you the difference in cash. A HELOC is a second loan, a line of credit, that keeps your current mortgage in place.
When you spread debt over more years, you pay interest for more months. A smaller payment over a long time can add up to more than a bigger payment over a short time.
Be careful. A cash-out refinance changes the rate on your whole mortgage, not just the new money. If your current rate is low, a HELOC that keeps that mortgage may cost less. This calculator lets you compare.
It can lower how much of your credit card limits you use, which can help. Opening a new loan and closing old cards can also affect your score. Everyone is different.
I can check what a HELOC or a cash-out refinance would look like for you. Call me or start an application.
Estimates only. This is not a loan offer. These results use simple math and the numbers you type in. They are not a pre-approval, a rate quote, or a promise to lend. Your real rate, payment, and costs depend on your credit, income, home, loan type, and other things. Not all applicants will qualify. Using your home as security means your home could be at risk if you can't make the payments. Travis Jost, Mortgage Loan Originator, NMLS #2191646. Heathrow Mortgage, NMLS #1849599. Equal Housing Lender.
