Reduce debt and stress.
Take control of your finances and consolidate your bills with a refinance from Embrace. A debt consolidation refinance uses the equity in your home to pay off high-interest credit cards, car loans, medical bills, and other debt. If you qualify, we can help you roll everything up into one convenient monthly payment.
When you refinance your mortgage, you essentially pay off your old mortgage with a new one that has different terms. Terms of a mortgage include the interest rate, number of payments, and loan balance. A bill consolidation mortgage allows you to borrow more than you owe on your current mortgage to consolidate other debt into your home loan. View Loan Examples >>
If you are looking to simplify your debt obligations from credit cards and other loans, a debt consolidation mortgage may be the right step to get your finances back on track. We’re here to help you find the right solution for your needs. Keep reading to learn more or get in touch with an Embrace refinance specialist today.
Lower interest rates
Mortgages typically offer much lower interest rates than credit cards and other loans, which could be 15%-18% on average. Lower monthly payments can free up money to use toward paying down your debt. View Loan Examples >>
Potential tax benefits
When it comes to taxes, not all debt is equal. The interest that you pay on your mortgage could be tax deductible, while the interest on credit cards and many other types of loans typically isn’t.
Embrace cannot provide tax advice, so if you have any questions about your specific situation, you should consult with a tax professional.
Single monthly payments
Consolidating your debt from credit cards and other loans can help convert multiple monthly bills into one. This may make it easier to manage your finances and see where your money is going each month, as you only need to worry about a single payment due date.
Things to Consider
Closing costs and additional fees
Refinancing your mortgage will come with fees and closing costs, just as your initial mortgage did. At a minimum, be sure that you plan to live in your home long enough to recoup the costs.
Unsecured vs. secured debt
Be aware that refinancing to consolidate unsecured debt, such as credit card bills, comes with a greater risk. That’s because you’re using your home as security that you’ll pay off your mortgage.
When you refinance with a debt consolidation mortgage, your home will need to be professionally appraised to let the lender know how much your home is worth. Your home’s appraised value is dependent on many factors, including the local real estate market and any improvements or renovations you may have done since you moved in.
Should you refinance?
Wondering if refinancing your mortgage could save you money? If today’s interest rate is lower than the rate on your current mortgage, there’s a good chance it could. Our Refinance Calculator can help you determine how much you will save and if refinancing is worth it in the long run.
Plug your current mortgage information into our Refinance Calculator. You can compare the total interest paid over the life of your loan — using your current interest rate versus a new lower interest rate. The calculator also shows your monthly savings and how long it will take to break even. Try out different numbers and scenarios to learn how a refinance might benefit you.
Where do I start?
It can feel so easy to accrue debt — and so hard to get rid of it. Often, making just one extra payment or paying more than the minimum due each month can greatly reduce the time it will take to get out of debt. Take a look at how increasing your monthly payments can accelerate the payoff.
If you think you would benefit from consolidating your bills through a mortgage refinance, Embrace Home Loans is here to help. Our mortgage specialists will guide you through every step of the refinancing and mortgage application process — from identifying what type of mortgage is right for you to understanding how your credit score can affect your interest rate.
For over 30 years, Embrace has helped people refinance existing mortgages and consolidate high-interest debt. And, our exceptional reviews show just how satisfied our customers are with our service, and prove our commitment to making sure your mortgage process is as easy and convenient as possible.
Call 800-333-3004 to speak with one of our expert loan officers and find out how refinancing to consolidate your bills can help you take control of your finances. Or fill out our online application and one of our mortgage specialists will contact you.
Frequently asked questions
What does it mean to refinance a mortgage?
What types of bills can I consolidate by refinancing?
How do interest rates affect my mortgage?
What does my mortgage payment include?
What is the loan-to-value (LTV) ratio? Why do I need to know that?
30-Year Fixed-Rate Refinance Mortgage Example:
The payment on a $225,000 30-year fixed-rate refinance loan at 2.875% with a 70% loan-to-value (LTV) is $933.51 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.13%. This assumes a FICO score of at least 701. Payment does not include taxes and insurance premiums, which will result in a higher monthly payment. Interest rates and annual percentage rates (APRs) are based on current market rates and are subject to change without notice. Rates offered may be subject to pricing add-ons related to property type, loan amount, LTV, credit score, and other variables. Mortgage insurance may be required for LTV >80%. If mortgage insurance is required, the mortgage insurance may increase the APR and the monthly payment. Stated rate may change or not be available at the time of loan commitment or lock-in.
15-Year Fixed-Rate Refinance Mortgage Example:
The payment on a $225,000 15-year fixed-rate cash-out loan at 2.625% with a 70% loan-to-value (LTV) is $1513.55 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.070%. This assumes a FICO score of at least 701. Payment does not include taxes and insurance premiums, which will result in a higher monthly payment. Interest rates and annual percentage rates (APRs) are based on current market rates and are subject to change without notice. Rates offered may be subject to pricing add-ons related to property type, loan amount, LTV, credit score, and other variables. Mortgage insurance may be required for LTV >80%. If mortgage insurance is required, the mortgage insurance may increase the APR and the monthly payment. Stated rate may change or not be available at the time of loan commitment or lock-in.