What a lower payment costs over thirty years
Two numbers, equally weighted: the change in your monthly payment and the change in total interest still to pay. The figures below are example data. Replace them with your own.
Your payment drops by $825 a month, and you would pay $55,662 more in interest over the life of the loan.
That is the trade. A balance that would have cleared in a few years is now spread across 30 years. Paying the monthly saving straight back into the new loan as extra principal is what turns this from a cost into a strategy.
These debts are unsecured today. Secured against the house, missing a payment puts the home at risk rather than the credit score.
The numbers behind this
| Loan | Balance | Payment | Months left | Interest left |
|---|---|---|---|---|
| Credit cards | $18,000 | $540 | 54 | $10,878 |
| Auto loan | $21,000 | $465 | 54 | $3,689 |
| Student loan | $14,000 | $180 | 100 | $3,861 |
| New loan | $55,500 | $360 | 360 | $74,090 |
Estimates only, based on the figures you enter. Not an application, a credit decision, a pre-qualification, or an offer of credit. Rates shown are the ones you type, not a quote. Actual terms depend on a full review and vary by lender. Consolidating unsecured debt into a mortgage secures it against your home.
The reasoning behind this tool: Debt Consolidation Mortgages: Two Numbers, Not One