Mortgage Debt Consolidation Calculator
Rolling high-rate debts into a cash-out refinance can slash your monthly payment — but stretching them over 30 years can cost more. See both sides.
A worked example
Running this tool on current national benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)) — swap in your own numbers to see how the result moves.
- Current mortgage balance
- $220,000
- Current mortgage payment
- $1,500
- Other debts to roll in
- $35,000
- Current payments on those debts
- $850
- New mortgage rate
- 6.75%
- New term (years)
- 30
new payment $1,653.93 on $255,000
- Current total payment$2,350.00
- New consolidated payment$1,653.93
- Monthly change$696.07
The math behind it
The calculator adds the debts you want to roll in to your current mortgage balance to get a new, larger loan, then amortizes that total at your new rate and term for a single consolidated payment. It compares that against what you pay now — your current mortgage payment plus the payments on those other debts — and reports the monthly difference. It also shows the new loan's amortization so you can see the long-term cost of stretching that debt over the mortgage term.
Assumptions & limits
- The consolidated loan is your current mortgage balance plus the debts rolled in, financed at the new rate over the new term.
- Closing costs on the cash-out refinance are not included — add them to judge the true break-even.
- The monthly comparison uses the payments you enter for your existing debts; it does not model their original payoff dates or rates.
- It assumes you actually close the paid-off accounts. Running the balances back up erases the benefit and leaves you with both payments.
- A single fixed interest rate is assumed for the new loan.
Source: Freddie Mac PMMS via FRED. Annual averages; latest weekly reading shown.
Common questions
Does consolidating debt into my mortgage save money overall?
It usually lowers your monthly payment, but not necessarily your total cost. Moving a debt you would have cleared in a few years onto a 30-year mortgage can mean paying far more interest over time, even at a lower rate. The calculator shows the monthly saving; weigh it against the longer payoff horizon.
What is the risk of rolling credit-card debt into a mortgage?
You convert unsecured debt into debt secured by your home. If you later cannot pay, the home is at risk in a way a credit-card balance never was. The trade of lower monthly cost for that added risk is the core decision this calculator is meant to surface.
Should I use a shorter term to consolidate?
A shorter new term keeps the total interest down but raises the monthly payment, which can undercut the cash-flow relief that motivates consolidation. Try a few terms in the calculator to find the balance between a lower payment and a reasonable payoff period.