Refinance for Debt Consolidation - One Payment. Lower Interest. Real Relief.
Crestico Funding can help you consolidate your debt into one affordable mortgage payment — with a much lower interest rate.
Step 1
Check Eligibility
Step 2
Payment Option
Step 3
Get Approved
Step 4
Close the Loan
Step 5
Repayment & Loan Terms
Why Consolidate Debt Through a Refinance?
Most unsecured debt (like credit cards) carries interest rates of 18%–30%. Mortgage rates are typically much lower — often 5%–7%.
By refinancing to consolidate your debt, you can:
- Lower your total monthly obligations
- Reduce or eliminate credit card interest
- Combine payments into one, simpler bill
- Improve cash flow and ease financial pressure
- Potentially boost your credit score over time
- Make real progress toward being debt-free
Is This the Right Move for You?
Debt consolidation works best when:
- You’re struggling with multiple payments
- You have high-interest credit card debt
- Your home value has increased
- Your credit score has improved
- You want a long-term solution to financial stress
Crestico always performs a custom break-even and savings analysis before recommending a refinance.
Frequently Asked Questions (FAQs)
How does debt consolidation refinancing work?
You refinance your existing mortgage for more than what you currently owe, and use the extra funds (cash-out) to pay off high-interest debts like credit cards, personal loans, or medical bills. You end up with one payment at a lower mortgage interest rate.
What types of debt can I consolidate with a refinance?
Common debts include:
- Credit cards
- Auto loans
- Personal or payday loans
- Medical bills
- Business debts
- IRS or tax debts (case-by-case)
Crestico will review your liabilities and show exactly what you can include.
Will my total monthly payment go down?
Yes — even though your mortgage balance may increase, your total combined payments (mortgage + other debts) typically go down because mortgage rates are much lower than credit card or loan rates.
Can this help my credit score?
Yes. By paying off revolving credit (like cards), your credit utilization drops, which often leads to a boost in your credit score over time — especially if you don’t rack up new debt.
Can I refinance to consolidate debt if I have bad credit?
Yes, but it depends on your situation. FHA and non-QM (alternative) loan programs may offer flexibility for credit scores as low as 580. Crestico will evaluate your options honestly and clearly.
How fast can I close?
Most debt consolidation refinances through Crestico close in 21–30 days. We offer fast approvals, streamlined documentation, and direct updates throughout the process.