Use your home equity to pay off credit cards, personal loans, and medical bills — replacing 18-29% interest rates with today's mortgage rates. One monthly payment. Potentially tax-deductible interest. Dream Financial Management since 1994.
| Debt | Balance | Rate | Monthly |
|---|---|---|---|
| Credit Card 1 | $25,000 | 24.99% | $625 |
| Credit Card 2 | $15,000 | 22.99% | $345 |
| Personal Loan | $20,000 | 15.00% | $475 |
| Medical Debt | $10,000 | 0%* | $250 |
| TOTAL | $70,000 | ~21% avg | $1,695 |
| Item | Amount |
|---|---|
| Existing Mortgage | $250,000 |
| Debt Consolidation | $70,000 |
| New Mortgage Total | $320,000 |
| New Rate | 6.5% |
| New Payment (P&I) | $2,022 |
| Monthly Savings | $250-600+ |
*Medical debt often has 0% promotional rates that expire. Calculated for illustrative purposes. Actual savings depend on your specific rates and situation.
Replace 18-29% credit card APR with today's mortgage rates (6-7% range). Over a 30-year term, this saves tens of thousands — even if you pay the mortgage over the full term.
Instead of juggling 4-6 minimum payments on different cards and loans, you make one mortgage payment. Simpler budgeting, fewer late fees, less stress.
Mortgage interest on loans up to $750,000 for acquisition debt is tax-deductible. The consolidated debt portion should be discussed with a tax professional for deductibility analysis.
Paying off revolving credit card balances can significantly improve your credit utilization ratio — a major factor in your credit score. Many borrowers see 20-50+ point improvements.
Dream Financial Management evaluates your debt situation and home equity to determine if a cash-out refinance makes sense for debt consolidation. 500+ lenders. Since 1994.
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