January 3, 2025

Put Your Equity To Work With Debt Consolidation Refinance

Did you know that you can use the equity in your home? When you think about getting cash out of your home, you might think of a traditional Home Equity Loan or a Home Equity Line of Credit (HELOC) that many people use to fund home renovations, like a new roof or a bathroom remodel. What you might not think of is putting the equity in your home toward paying down other debt. That’s where a debt consolidation refinance comes in.

What is debt consolidation refinance?

If you’ve got equity in your home but still struggle under the burden of other debt and high interest rates, you may be a good candidate for debt consolidation refinance. It puts the equity in your home to work by consolidating your debt into one monthly payment with your mortgage. So, when you think of getting money out of your home, don’t just think, “Get money for a new roof.” Think, “Get my bills together under one roof.” Debt consolidation refinance could potentially save you hundreds a month.

When is it a good idea to consolidate debt with your mortgage?

Making minimum payments on a large credit card balance is like moving a mountain of dirt with a toy shovel. Many people benefit from consolidating their bills under one low interest rate by using the equity in their home to knock out higher-interest debt for good. As part of a long-term, debt-reduction strategy, debt consolidation refinance provides many benefits:

You can move revolving credit card debt into an installment loan, giving you a clear path to getting out of debt when paired with responsible credit habits.
You can typically pay off your credit card debt at a much lower interest rate.
You may get a better rate or terms on your mortgage.
Your mortgage interest is potentially tax deductible.*
You may be able to raise your credit score more quickly.
Most people find that streamlining bills into one payment frees significant time and minimizes financial stress.

You’ve worked so hard for your home — let the equity in your home work for you. Wondering if debt consolidation refinance is right for you? Get in touch with us today!

Subject to credit approval.

^*For specific tax advice, please consult a qualified tax professional.

Grow Financial mortgage loans are valid for the purchase or refinance of owner-occupied residential properties in the states of Florida, South Carolina, North Carolina, Georgia, Alabama and Tennessee including single-family detached, condominiums and townhomes. Not valid for the purchase of investment properties. Grow Financial mortgage loan rates are updated daily and available at growfinancial.org.

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Home Education