Debt consolidation through your mortgage: one payment, one rate, one plan

Juggling credit cards, a personal loan, a medical bill and maybe a car note wears down even disciplined budgeters. Credit card APRs routinely sit above 20%, personal loans often land between 10% and 15%, and even newer auto loans can run 8% or higher. Mortgage rates, by comparison, are typically a fraction of those numbers, so rolling unsecured debt into your mortgage can reduce total monthly obligations by hundreds of dollars while also simplifying your finances.

• You have meaningful home equity, typically 20% or more after the new loan
• High-interest balances are large enough that interest savings outweigh closing costs
• You have a stable income and the discipline to avoid running the balances back up
• You want predictable, fixed payments instead of variable credit card minimums

1. You're converting unsecured debt into debt secured by your home
2. Stretching short-term debt over 15 or 30 years can increase total interest paid, even at a lower rate
3. Closing costs apply, so the math has to work over your expected time in the home
4. If you run the cards back up, you'll be worse off than before, so consolidation only works with a plan