Loan Programs  |  14

Debt Consolidation

Five payments walk into a bar. They leave as one.

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The quick version

How it works

If credit cards, car loans, and personal loans are eating your monthly budget, your home equity may be the way out. Debt consolidation uses that equity to pay off higher-rate balances and roll them into one payment, usually at a much lower rate. There are three main ways to do it: a cash-out refinance that replaces your mortgage, a home equity loan with a fixed lump sum, or a HELOC you draw from as needed. The right choice depends on your current mortgage rate and how much you owe. One honest note: this turns unsecured debt into debt secured by your home, and stretching it over a longer term can cost more over time. That's why we compare the monthly savings and the total cost side by side.

Highlights

One payment instead of many

Simplify your bills and your budget.

Lower blended rate

Swap credit card rates for mortgage rates.

Three ways to do it

Cash-out refi, home equity loan, or HELOC.

Total cost, not just the payment

We show you the full picture before you decide.

FAQ

Questions people actually ask

Tap a question to see the answer.

1How does debt consolidation with a mortgage work?+
You borrow against your home's equity and use the money to pay off higher-rate debts. Instead of several payments at high rates, you make one payment at a lower rate.
2Which debts can I pay off?+
Most consumer debts, including credit cards, auto loans, personal loans, and medical bills. We'll look at which balances make the most sense to include.
3Should I use a cash-out refinance, a home equity loan, or a HELOC?+
If your current mortgage rate is low, a home equity loan or HELOC lets you keep it. If your rate is higher than today's, a cash-out refinance can combine everything into one loan. We'll price all three.
4Will consolidating hurt my credit?+
There's a credit check when you apply. Paying off credit card balances often helps your score over time because it lowers your utilization, as long as the cards don't fill back up.
5What are the risks?+
Your home secures the new debt, so missed payments put it at risk. A longer repayment term can also mean more total interest. We'll make sure the plan actually saves you money.
6How much could I save each month?+
It depends on your balances, their rates, and the loan you choose. We'll show you the before-and-after payment and the total cost so the decision is easy.
7Can I consolidate if my credit isn't perfect?+
Often, yes. Equity in your home can open doors that unsecured loans won't. We'll check which programs fit your situation.
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This information is general and educational. It is not a commitment to lend. Program guidelines vary by lender, change over time, and are subject to credit approval and underwriting.

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Plano Mortgage Broker

Mohave Mortgage

5830 Granite Pkwy # 100-213

Plano Texas, 75024

Office: (469) 414-5554

Branch NMLS # 2690682

Mohave Mortgage

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