Use the equity in your home to pay off higher-cost credit cards, personal loans, or other debt — and replace multiple payments with one.
Debt consolidation isn't a separate loan product on its own — it's a use case, and one of the most common reasons homeowners tap into equity at all. Using a HELOC, a HELOAN, or a cash-out refinance, you convert higher-cost, often variable-rate debt — credit cards, personal loans, medical bills — into a single loan secured by your home.
CFPB research on cash-out refinance borrowers specifically has found that paying down non-mortgage debt is one of the most common uses of proceeds, and that many borrowers see measurable credit improvements afterward. That said, moving unsecured debt onto a loan secured by your home is a meaningful decision — it's worth discussing directly with a loan officer, and where appropriate, a credit counselor, before you commit.
Replace multiple credit card and loan payments — each with its own due date and balance — with a single, predictable payment.
A lump-sum HELOAN or cash-out refinance for a known payoff amount, or a HELOC if you want to consolidate in stages.
Credit card balances typically carry materially higher costs than a mortgage-secured loan.
We'll help you weigh a HELOC, a HELOAN, and a cash-out refinance against your specific balances and goals — not just push one product.
| Requirement | General Guideline | Notes |
|---|---|---|
| Underlying Product | Determined by your choice of HELOC, HELOAN, or cash-out refinance | See each product's individual qualifying requirements |
| Equity Position | Sufficient equity to support the consolidation amount | General guideline — subject to underwriting and program |
| Credit & DTI | Evaluated per program guidelines, including debts being paid off | See the CFPB debt-to-income reference below |
| Use of Funds | Payoff of existing non-mortgage debt, typically at or shortly after closing | Some programs require direct payoff documentation |
Because your home secures the new debt, it's worth being deliberate about consolidation rather than defaulting to it — a loan officer can walk through whether a HELOC, HELOAN, or cash-out refinance is the right fit given your specific balances, rates, and how long you plan to stay in the home.
Every loan we originate runs through a low-cost structure: no unnecessary lender fees, meaningful closing-cost savings, and closings in as few as 10 days — backed by competitive, industry-leading pricing and a dedicated loan officer instead of a call center.
We believe an informed borrower makes a better decision. These are independent, high-trust sources — not Saffron Premier Mortgage marketing — where you can read more or independently verify our license.
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