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 the old mortgage with a new one that has different terms. You still owe the money you did before consolidating, but it will be due with the terms of the new mortgage. Debt consolidation mortgages are popular because they offer a host of benefits that help you manage your household budget.

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.

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Potential Benefits

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.

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. If you fall behind or miss enough payments, the lender can foreclose on your home.

Home equity appraisal
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.

How long will it take to pay off my credit cards?

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 types of bills can I consolidate by refinancing?

Consolidating your bills by refinancing your mortgage can take other debt such as student loans, auto loans, personal loans, medical bills, and credit card balances and roll them all into one, easy payment.
Refinancing is simply the process of replacing your existing mortgage with a new one with a lower rate and/or better terms. It can help you realize your dreams and it doesn't get any easier than with Embrace Home Loans.
A typical monthly mortgage payment includes the principal, interest, homeowners insurance, property taxes, and private mortgage insurance (PMI) if you put down less than 20%. You can pay more on your mortgage each month, but make sure you specify that you want the extra money to go toward the principal only (vs. prepaying interest).
Loan-to-value (LTV) tells you how much equity you have in your home relative to how much you owe on it and what the house is worth. LTV is important to know when refinancing because it can affect your interest rate and whether or not you’ll need Private Mortgage Insurance (PMI).
High interest rates bring higher monthly payments and increase the overall interest you’ll pay over the life of your loan. A low interest rate saves you money in both the short and long term. Sometimes a bigger down payment can help you get a lower interest rate. Keep in mind that the money you pay in interest doesn’t ever go toward paying off the principal, so it’s smart to get the lowest interest rate possible and then pay off your house as quickly as you can.

"Chris was great to work with on my refi. He was very knowledgeable and walked through the different scenarios and made sure I was comfortable with my decision." - Matthew, MD

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30-Year Fixed-Rate Refinance Mortgage Example:
The payment on a $225,000 30-year fixed-rate cash out refinance loan at 3.875% with a 70% loan-to-value (LTV) is $1058.04 with 2 points due at closing. The Annual Percentage Rate (APR) is 4.123%. This assumes a FICO score greater than 680. 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.

30-Year Fixed-Rate Purchase Mortgage Example:
The payment on a $225,000 30-year fixed-rate purchase loan at 3.49% with a 70% loan-to-value (LTV) is $1,009.10 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.733%. This assumes a FICO score greater than 700. 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.