Debt Consolidation Loans
Swap several payments for one fixed loan and one due date.
ExploreRefinance to lower the payment or clear costly debt
A refinance replaces your existing mortgage with a new one. Depending on the goal, that can mean a lower rate, a shorter term, or cash-out equity used to clear high-interest balances.
In plain terms
How mortgage refinance actually works
Secured mortgage rates are usually far below unsecured card rates, so moving expensive debt into a refinance can lower your monthly outgoings sharply. A rate-and-term refinance can also cut lifetime interest if rates have fallen or your credit has improved.
The risks are real too. Cash-out refinancing puts your home behind debt that was previously unsecured, and restarting a 30-year term can increase total interest. We model the break-even point and total cost before you apply.
A good fit if
- Current rates are meaningfully below the rate on your existing mortgage.
- You hold at least 15–20% equity in the property.
- You plan to stay long enough to recover the closing costs.
- You carry high-interest unsecured debt that equity could clear.
- Your credit and income have improved since you first borrowed.
Probably not right if
- You expect to sell before reaching the break-even point.
- Extending the term would add more interest than the new rate saves.
- Your equity is too thin to avoid mortgage insurance.
- The real issue is cash flow that a bigger secured loan would not solve.
Step by step
What happens, in order
- 01
Goal and break-even
We confirm what you want the refinance to achieve and calculate how long it takes to recover the costs.
- 02
Compare structures
Rate-and-term, shorter term or cash-out, each modelled for monthly payment and lifetime cost.
- 03
Application and appraisal
The lender verifies income and orders an appraisal to confirm the property's value.
- 04
Close and disburse
You sign the new loan. Any cash-out can be paid directly to creditors to clear balances.
Honest comparison
The upside, and what it costs you
Every route has both. Anyone showing you only the first column is selling something.
| What it gives you | What it costs you |
|---|---|
| Secured rates are far below unsecured card rates | Closing costs typically run 2–5% of the loan |
| Can materially reduce the monthly payment | Cash-out puts your home behind formerly unsecured debt |
| A shorter term can save substantial lifetime interest | Restarting a 30-year term can increase total interest |
| Interest may be deductible when cash is used on the home | Requires enough equity and a qualifying appraisal |
What it costs
Expect closing costs of roughly 2–5% of the loan, covering appraisal, origination and title. Some lenders roll these into the loan, which raises the balance. We show the break-even month before you commit.
How long it takes
Most refinances close within 30 to 45 days of application, depending on appraisal scheduling and how quickly documents are provided.
Questions
Mortgage Refinance FAQs
Is cash-out refinancing a good way to pay off cards?
It can be, because the rate is usually much lower. But it turns unsecured debt into debt secured by your home, so it only makes sense if the spending that created the balances has stopped.
How much equity do I need?
Most lenders want you to keep at least 15–20% equity after the refinance to avoid mortgage insurance and get the best pricing.
What is the break-even point?
It is the month when your savings from the new loan exceed the closing costs. If you might sell before then, refinancing usually does not pay.
Client reviews
What mortgage refinance clients said
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