Americans carry an average of over $5,500 in credit card debt, often at rates above 19% APR, while mortgage debt typically carries a much lower rate. A cash-out refinance puts that gap to work, letting you tap your home equity to pay off high-cost debt and fold several bills into one more affordable payment.
A larger loan can raise your monthly mortgage payment, so weigh it against the debt it replaces.
In 2025, homeowners who did a cash-out refinance pulled a median of about $94,000 in equity, which shows how much borrowers can access and redirect toward pressing financial needs.
A larger loan also tended to raise monthly mortgage payments, and that's a trade-off worth understanding before you borrow. For many homeowners, though, replacing revolving debt with a structured mortgage payment creates predictability and can lower overall interest costs over time.
If high-interest credit card debt is dragging down your monthly budget, you're far from alone, and your home equity may offer a lower-rate way to pay it off.
Comparing what you pay on those cards today with a single cash-out refinance payment is the clearest way to see whether the switch gives you room to breathe.
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A loan officer can compare your current card payments with a cash-out refinance payment so you can see the full trade-off. Pre-qualifying will not affect your credit score.
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