Short answers to common questions about consolidating debt with home equity, with links to the full guides.
What is a debt consolidation mortgage?
Using home equity to pay off higher-interest debts. See What Is a Debt Consolidation Mortgage?
Will it save me money?
Often on interest, but not always overall. See how to calculate your real savings.
How much equity do I need?
Enough to cover debts and costs within the lender’s limit. See equity needed.
What does it cost?
Legal, appraisal, possibly a penalty and lender fees. See the costs.
Will it hurt my credit?
Usually it helps over time as balances drop. See your credit score.
Can I consolidate with late payments?
Often, through alternative lenders. See consolidating with late payments.
Which debts should I include?
Usually the highest-interest ones first. See which debts.
Should I close my cards?
Often worth closing or lowering limits. See your paid-off cards.
What if I can’t consolidate?
Other options exist. See consolidation vs counselling vs a proposal.
This article is general information, not financial or legal advice. Lender requirements, rates and fees change and depend on your situation.