Leverage your home
equity to consolidate high-
interest debt

Potential equity to

consolidate debt

$389,316*

*Any estimates of potential equity availability is calculated by comparing the estimated property value to the outstanding loan balance. Additional liens or encumbrances on the property may reduce available funds.

Apply Now

Potential equity to
consolidate debt

$389,316*

Apply Now

Credit cards and personal loans often come with high interest rates.

Home equity can be a powerful financial tool. While it is usually accessed upon selling, you can use it to consolidate high-interest debt and free up monthly cash.

Example Scenario

Debt Type

Balance

APR

Monthly Payment*

Three Credit Cards

$18,000

23%

$525/month interest + 1% of balance

Personal Loan

$12,000

13.5%

$183/month 10-year term

Store Card

$3,500

28%

$117/month interest + 1% of balance

Total

$33,500

$825/month

Debt Type

Monthly Payment*

Three Credit Cards

$18,000

APR 23%

$525/month interest + 1% of balance

Personal Loan

$12,000

APR 13.5%

$183/month 10-year term

Store Card

$3,500

APR 28%

$117/month interest + 1% of balance

Total

$33,500

$825/month

*Sources: Credit Card Monthly Payment: https://www.bankrate.com/credit-cards/tools/minimum-payment-calculator/, Personal Loan Monthly Payment: https://www.bankrate.com/loans/personal-loans/personal-loan-calculator/

Use Home Equity to Consolidate
High-Interest Debt

Home equity may be an option to pay-off high-interest using a HELOC or Home Equity Loan, allowing you to potentially save on monthly interest and total repayment costs.

Balance

Est. Monthly Payment

Example Debt

$33,500

$825

HELOC

$33,500

$545.21*
(Principal & Interest payment)

Debt Type

Est. Monthly Payment

Example Debt

$33,500

$825

HELOC

$33,500

$545.21*

(Principal & Interest payment)

*Example scenario based on a Home Equity Line of credit (HELOC) assumes a 9.5% interest rate and 9.5% APR with monthly principal and interest payments over a 120-month term. The initial payment is $545.21 with an additional $280 applied toward principal monthly. Interest rates may vary. This example is for illustrative purposes only and is not a commitment to lend. Other terms and conditions may apply. Consult with your loan advisor for current rates and details.

Example monthly scenario payments

$825.00

Monthly Home Equity Line of Credit Payment

- $545.21

Possible Monthly Savings

$279.79

Your Guide to Simplifying Debt

Your home's equity may provide an opportunity to consolidate higher interest debt into one simple payment. Let's review your financial goals and determine what makes sense for you.

Your Guide to Simplifying Debt

Your home's equity may provide an opportunity to consolidate higher interest debt into one simple payment. Let's review your financial goals and determine what makes sense for you.

Potential benefits of consolidating debt into your mortgage

Consolidating debt may lower interest costs, boost credit scores, and improve your financial flexibility.

Credit-Score Increase

Lowering credit utilization may raise your credit score.

Tax Deductibility

Mortgage interest may be tax deductible. Always consult with a tax advisor for more details.

Debt-to-Income

Consolidating high-interest payments into a lower monthly payment may improve your debt-to-income (DTI) for future loan applications.

Next Steps

Confirm the interest rates on your high interest debt

Understanding the interest rates of your current debt will give you a head start when running the numbers solo or the next time we connect.

Schedule some time to crunch the numbers

I'll review rates, outline the potential costs of tapping into your equity, and compare them to your current debt payments to help you evaluate whether this approach aligns with your goals.

Disclaimer

Annual Percentage Rates (APR) are derived from a reasonably current index and margin, including data sourced from the Freddie Mac Primary Mortgage Market Survey (PMMS). The information provided is intended solely for general informational and educational purposes and does not constitute an advertisement or solicitation to extend consumer credit under Regulation Z (12 CFR §1026.2).

Rates, programs, terms, and conditions are subject to change at any time without notice. Any product examples, scenarios, or calculations shown are estimates only and are provided for illustrative purposes. All mortgage products and programs are subject to borrower qualification, including verification of income, creditworthiness, and property eligibility. Not all applicants will qualify. Nothing contained herein constitutes a commitment to lend or an offer of credit.

Property value information displayed is based on estimates obtained from independent third-party data providers. These estimates may differ from the actual value determined through an appraisal at the time of a transaction. Fees, costs, and charges may apply and may vary by loan product and by state. Loan products may be secured by a lien on the subject property. Submission of an application and full underwriting approval may be required. Approval is not guaranteed. Loan details may be edited using the links provided within the report. Upon editing loan information, responsibility for the accuracy of such information is assumed by the editor. Payment comparisons do not guarantee savings or approval. Application required and subject to underwriting approval.

Interest rate information reflects national averages and is provided for informational purposes only. Such rates are not locked, quoted, or guaranteed. Market conditions may cause rates to change at any time. If a rate is not locked at application, the rate at closing may differ from the rate displayed. The definitive terms governing any loan are set forth exclusively in the executed loan documents, which control in all cases. Additional terms, conditions, and limitations apply. Contact your loan officer to obtain personalized rates specific to your scenario.

Principal and interest payment calculations are estimates derived from available data sources, including public records where applicable, and may not reflect actual payment history, prepayments, penalties, late charges, escrow items, or other fees. To receive accurate loan options tailored to your individual circumstances, you should contact a licensed lender directly.

Estimated home values are generated using automated valuation models (AVMs), which rely on computer algorithms analyzing recent comparable property sales and other available market data. These valuations are not appraisals and should not be relied upon in place of a professional appraisal or underwriting determination. In cases where AVM data is unavailable or unreliable—such as for newly constructed properties—or where conflicting information exists, alternative values such as prior appraisals or recorded sale prices may be displayed when available. Final loan approval will require a full appraisal, which may differ materially from any estimated value shown.

Any estimates of potential cash-out availability are calculated by comparing the estimated property value to the outstanding loan balance and assume closing costs are paid separately. Additional liens or encumbrances on the property may reduce available proceeds.

All content is provided strictly for informational and educational purposes and should not be interpreted as implying approval or endorsement by HUD, FHA, VA, or any government agency or government-sponsored enterprise.

Mortgage Rates & Payments

[1] Mortgage rates are volatile and subject to change without notice. Rate comparisons are derived using the Freddie Mac Primary Mortgage Market Survey (PMMS). Payments comparisons are calculated using the original loan balance and loan term at time of closing and interest rates derived from the Freddie Mac PMMS. Original loan data is obtained directly from OTTO Homes Inc. or retrieved from public record where available. Accuracy is not guaranteed. Loan details may be edited using the links provided within the report. Upon editing loan information, responsibility for the accuracy of such information is assumed by the editor. Payment comparisons do not guarantee savings or approval. Application required and subject to underwriting approval.

Leverage your homeequity to consolidate high-interest debt

Leverage your homeequity to consolidate high-interest debt

Credit cards and personal loans often come with high interest rates.

Example Scenario

Use Home Equity to ConsolidateHigh-Interest Debt

Your Guide to Simplifying Debt

Your Guide to Simplifying Debt

Potential benefits of consolidating debt into your mortgage

Credit-Score Increase

Tax Deductibility

Debt-to-Income

Next Steps

Confirm the interest rates on your high interest debt

Schedule some time to crunch the numbers

Comment thread

Disclaimer

Mortgage Rates & Payments

Leverage your home
equity to consolidate high-
interest debt

Leverage your home
equity to consolidate high-
interest debt

Use Home Equity to Consolidate
High-Interest Debt