Strategy focus

Debt consolidation

Stop paying 20%+ interest to credit card companies. Use your home equity to pay off debt and lower your total monthly obligations.

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The high cost of “minimum payments”

The average credit card interest rate is currently over 24%. Carry $30,000 at that rate and you may be paying more than $600 a month in interest alone — which makes the principal nearly impossible to pay down.

A debt consolidation refinance rolls those high-interest balances into your mortgage, which typically carries a far lower rate, cutting your total monthly obligations.

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The credit utilization effect

High credit card utilization — carrying balances near your limits — weighs heavily on your credit score. Paying those balances off through a refinance drops utilization toward zero, which often lifts scores meaningfully within a cycle or two. Individual results vary.

A real client scenario

Current situation

Mortgage payment:$2,500
Credit cards ($40k):$1,200
Auto loan:$600
Total outflow:$4,300

After consolidation

New mortgage payment:$2,900
Credit cards:$0
Auto loan:$0
Total outflow:$2,900
Cash flow saved:$1,400/mo

Example assumes rolling roughly $50,000 of debt and closing costs into the new loan. Actual savings depend on your rate, credit score, and equity. Consolidating shorter-term debt into a 30-year mortgage lowers the monthly payment but can increase total interest paid, and it secures previously unsecured debt against your home.

Common questions

Does this mean I start my 30 years over?
By default yes, a new 30-year loan resets the clock — which is what makes the monthly payment drop so sharply. If keeping your original payoff date matters to you, we can structure a shorter term, or you can apply the monthly savings as extra principal and reach payoff sooner than the schedule requires.

How does the bank pay my creditors?
Directly. At closing, escrow sends payoff funds straight to each creditor you listed on the application — the money does not pass through your hands. You will see each payoff itemized on your closing statement.

My mortgage rate is 3%. Should I lose it?
Usually not. Replacing a 3% first mortgage to consolidate debt means paying today’s rate on the entire balance, which rarely pencils out. In that situation a home equity loan or HELOC behind your existing mortgage is almost always the better move. We run both scenarios and show you the numbers.

Let us beat your rate

No obligation analysis. No hidden junk fees. If we can’t beat your deal, at least you’ll know you have the best one.

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