What would consolidating my debts actually save?

List what you owe, enter the consolidation rate you've been quoted, and see the monthly and annual difference, with APR shown alongside every payment.

Debt consolidation

Should I roll my debts into my home?

Your debts

Total $39,500 · $1,235/mo

These are example debts. Replace them with yours.

Debt

Balance

APR %

Payment

Debt

Balance

APR %

Payment

Debt

Balance

APR %

Payment

The consolidation loan

Loan amount

Matches your debt total. Go higher to take extra cash.

Loan rate Needed

Pay it off over

Closing costs

Monthly payment change

Type the loan rate to compare

• The rate you were quoted on the new loan

This calculator never fills in a rate for you.

Debts today: $39,500
Paying now: $1,235/mo

See my consolidation options →Or talk it through with Randy

Prefer to talk now? Call (949) 990-6030

Estimates based only on the numbers you enter, for illustration. Not a loan offer, a rate quote, or a commitment to lend. Subject to credit approval.

Monthly payment changeAdd the loan rate

See breakdown

The short answer: it depends on the spread between what your debts cost now and the rate you qualify for on a home-equity-backed loan, and on the term you choose. This calculator adds up your real minimum payments and weighted average rate, then compares them against one fully amortizing loan at the rate you enter.

Why compare total interest, not just the monthly payment?

Stretching balances over a longer term almost always lowers the monthly payment, but that alone doesn't mean you saved money. The honest comparison is the payment difference AND what the loan costs over its life. The calculator shows the loan's APR (which includes closing costs) right next to its payment so you see both sides.

Which loan type is best for consolidating?

If your current first mortgage has a low rate, a HELOC or HELOAN leaves it untouched. If your first mortgage rate is already high, a cash-out refinance may make sense. The math works the same either way. The cash-out refi vs. HELOC calculator compares those two paths directly.

Illustrative example: not an offer or a rate/APR quote

A homeowner carries $39,500 across two credit cards and a personal loan (the example already filled in above), with payments totaling $1,235 per month at rates from 13.5% to 24.99%.

Consolidating the full $39,500 into one fixed, fully amortizing home-equity loan, at whatever rate they are actually quoted, replaces three payments with one and swaps revolving card rates for a single secured rate. Whether that saves money, and how much, depends entirely on the quoted rate, term, and closing costs, which is exactly what the calculator above computes from your own numbers.

Frequently Asked Questions

How does consolidating debt with home equity work?

You borrow against your home through a HELOC, HELOAN, or cash-out refinance and use the proceeds to pay off higher-rate debts like credit cards. You then make one payment on the new loan instead of several. Because the loan is secured by your home, rates are typically lower than unsecured card rates, but your home becomes collateral.

Will consolidating always lower my monthly payment?

Not always. It depends on the rate you qualify for, the term you choose, and the balances involved. A longer term can lower the monthly payment while increasing total interest paid over time, so always compare both numbers, not just the payment.

What rate should I enter in the calculator?

Enter the rate you have actually been quoted for a HELOC, HELOAN, or cash-out refinance. The calculator never assumes a rate for you, because your real rate depends on credit score, equity, income, and property type.

Is it risky to pay off credit cards with home equity?

It converts unsecured debt into debt secured by your home: if you cannot repay, your home is at risk. It also only helps long-term if the spending that built the balances stops. Consolidation is a tool, not a cure; talk through whether it fits your situation.

Does the calculator store my debt information?

Your entries are kept only on your own device for about 30 minutes so a page refresh doesn't wipe your work. Nothing is transmitted or stored on a server.

Calculator results are estimates based only on the numbers you enter and are for educational purposes. Enter the rate you have been quoted. This tool never assumes or suggests a rate. Subject to credit approval. Your home is used as collateral and may be at risk if you do not repay. APR, terms, and repayment structure vary by product.

Rates and program availability may vary based on the state or region in which the financed property is located. This is not a credit decision, an offer, or a commitment to lend. Program restrictions apply.

Randy Mathis | NMLS# 1516760 | Lumin Lending Inc. NMLS# 2716106 | Equal Housing Lender | License information