Family on front steps of home

Refinancing Your Mortgage To Pay Off Debts

Explore your mortgage options

NMLS #3030

*Connect with a mortgage specialist

We teamed up with Rocket Mortgage to help you get house-hunting sooner. Answer a few questions and an agent will reach out to discuss your options.

Get Started by selecting an option below

What kind of loan are you interested in?

What to expect

Tell us what you need and a representative from Rocket Mortgage will give you a call. You’ll have support at every step.

What kind of property do you want to purchase? What kind of property do you own?

Why we’re asking

Rocket Mortgage® can provide a more accurate rate estimate if they know what kind of property you’re interested in.

NMLS #3030
How do you use your property? How would you use this property?

Why we’re asking

Having a little more information upfront helps Rocket Mortgage® provide a personalized rate faster.

NMLS #3030
When are you planning to buy?

Still House Hunting?

Hope you find your dream home soon! In the meantime, it’s never too early to know your rate.

NMLS #3030
Are you a first-time home buyer?

It’s all good:

Whether it’s your first – or second property – Rocket Mortgage® can provide you with a rate estimate.

NMLS #3030
Do you have a second mortgage?

It’s all good

If you have a second mortgage, it’s no problem. Letting us know helps to customize your rate.

NMLS #3030
What is your credit score?

Don’t know your score?

Don’t sweat it! Make your best guess. Credit scores range from 300 (low) to 850 (excellent).

NMLS #3030

Tell us a bit more about you

What happens next?

A representative from Rocket Mortgage® will be in touch to discuss your commitment-free, personalized rate. Then you can decide whether you’d like to lock it in!

NMLS #3030

Enter your contact info so Rocket Mortgage® can get in touch!

By providing your contact information and clicking the "Agree & Send Information" button below, you agree to our Terms of Use and Privacy Policy. You also expressly consent by electronic signature to receive telephonic sales, promotional, marketing and other calls and text messages, including any calls and messages sent by any automated system or other means for the selection or dialing of telephone numbers, or using an artificial or prerecorded voice message when a connection is completed, from Rocket Mortgage, its Family of Companies, our partner companies and our marketing partners at the telephone number you have provided, even if that telephone number is on a corporate, state, or national do-not-call list or registry. Your consent and agreement to receive such calls or text messages is not a condition of purchasing any property, goods or services from us, our Family of Companies or any of our partners.

NMLS #3030
Your information has been sent!

A Rocket Mortgage® expert will reach out soon to discuss your options.

Your information has been sent!

A Rocket Mortgage® expert will reach out soon to discuss your options..

Between the increased amount of debt that weighs upon many consumers and the declining interest rates on mortgages, many people have considered refinancing their homes to pay off some of that debt.

With growing consumer debts, should consumers refinance their mortgages to pay off debts?

By refinancing, they replace their old mortgage with a new one that has a lower interest rate. This helps to reduce their monthly payments, allowing them to pay more towards other types of debt. A refinance can also be considered as a cash-out option, where consumers borrow against their home’s equity.

Advantages of Refinancing

There are several advantages of doing this. Interest rates on today’s mortgages are much lower than those on credit cards, allowing consumers to pay off their high-interest debts and reduce their overall combined debt interest rate by several points. Another advantage is that the interest paid on mortgages can be deducted from personal tax returns, while the interest on other types of debt cannot.

Downsides of Refinancing

There are, however, downsides to refinancing. If a consumer pays off credit cards using the money received from a cash-out mortgage, they may immediately begin using those credit cards to make new purchases, building up their debt once again. This will quickly leave them with the same amount of debt, but with no equity in their property.

Homeowners are also cautioned not to refinance their homes for large sums of money much greater than what they need. Doing so will put them in more debt overall, and that will be debt that will take much longer to pay off.

See your refinancing options

Ready to see what your new mortgage could look like? Get expert recommendations today and start planning for your future.

The Short Version

  • By refinancing, they replace their old mortgage with a new one that has a lower interest rate.
  • Interest rates on today’s mortgages are much lower than those on credit cards.
  • Interest paid on mortgages can be deducted from personal tax returns, while the interest on other types of debt cannot.
Back to top of page

You Should Also Check Out…

Our team of financial experts write, review and verify content for accuracy and clarity.