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Debt Consolidation Refinance Calculator
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Your numbers
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Debts to pay off
Combined monthly payment
$2,658 → $1,884
Warning: your monthly payment drops, but total interest rises by $71,433 because the debt is stretched over 30 years.
Closing costs of about $5,600 are covered by the lower payment in 8 months.
No credit check to see options. Estimates use principal and interest only.
How this calculator works
A debt consolidation refinance replaces your mortgage with a larger one and uses the extra cash to pay off credit cards, personal loans or car loans. Because mortgage rates are usually far below credit-card rates, your combined monthly payment often falls — sometimes by hundreds of dollars.
The catch is time. A credit card you would have paid off in four years gets folded into a 30-year loan. Even at a lower rate, paying for 30 years can mean more total interest than you would have paid on the debts themselves. That is why this calculator shows two things side by side: the combined monthly payment before and after, and the total interest before and after.
Enter your current mortgage balance, rate and years left, then list each debt with its balance, APR and the monthly payment you actually make. We estimate how long each debt takes to pay off at that payment and how much interest it costs. Then we add the debts to your mortgage balance, apply the new rate and term, and compare. Closing costs are estimated at 2% of the new loan amount, and the break-even shows how many months of lower payments it takes to recover them.
If total interest goes up while the payment goes down, the calculator says so plainly. That doesn't automatically make consolidation a bad idea — lower payments can free up cash flow or stop high-interest balances from growing — but it is worth knowing. One way to get both benefits is to refinance and keep paying close to your old combined amount, which pays the loan down faster.
Also remember that consolidating turns unsecured debt into debt secured by your home. If you run the cards back up afterwards, you can end up with both a larger mortgage and new balances.
Worked example at this week's rates
Say you owe $250,000 at 7.11% with 27 years left, plus an $18,000 credit card at 24% APR ($540/month) and a $12,000 loan at 9% ($380/month). Refinancing $280,000 into a new 30-year loan at this week's 7.11% average changes your combined payment from $2,658 to $1,884 a month.
Total interest goes from $326,656 to $398,088 — higher, because the debts are stretched over 30 years. With about $5,600 in closing costs, break-even is 8 months.
PMMS is a national purchase-mortgage benchmark, not a refinance quote, so your own offer may be higher or lower.
Estimates only. Default rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Payments are principal and interest only. reficalculator.com is not a lender or broker; see how we calculate.
Frequently asked questions
- Does consolidating debt into my mortgage save money?
- It usually lowers your monthly payment, but it can raise total interest because short-term debt is repaid over a long mortgage term. The calculator shows both numbers so you can see which applies to you.
- What debts can I pay off with a cash-out refinance?
- Lenders generally allow cash-out proceeds to pay off credit cards, personal loans, auto loans, medical bills and student loans. Some lenders pay creditors directly at closing.
- How much equity do I need to consolidate debt?
- Many conventional cash-out loans cap the new loan at 80% of the home's value, so you typically need enough equity to cover your mortgage plus the debts within that limit. Program limits vary by lender and loan type.
- Will consolidating debt help my credit score?
- Paying off revolving card balances lowers your credit utilization, which can help scores over time. Applying for the loan adds a hard inquiry, which may lower scores slightly for a short period.
- What happens if I run up my credit cards again?
- You would carry both a larger mortgage and new card balances. Consolidation works best when the paid-off cards stay at or near zero.
- Does this calculator include closing costs?
- Yes. We estimate closing costs at 2% of the new loan amount and use them for the break-even figure. Your lender's Loan Estimate will list actual costs.
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