Confirm cash-out eligibility separately
A cash-out refinance must satisfy the selected program’s equity, seasoning, and underwriting requirements. Available equity does not automatically mean the requested amount can be borrowed. Fannie Mae — Cash-Out Refinance Transactions ↗
Compare two complete repayment plans
Write down each current balance, payment, rate, and planned payoff date. Compare that with the new mortgage amount, fees, payment, and term. A lower required monthly payment may reflect a much longer repayment period rather than lower lifetime cost.
Consider the change in security
Moving card debt into a mortgage changes what secures the borrowing. Avoid comparing only the rates without considering the home-secured obligation and the possibility of building new card balances afterward. Ask for a plan that shows how the consolidated amount will actually be repaid.
PUT IT INTO PERSPECTIVE
An example, not an offer
Illustration only: replacing $800 in monthly debt payments with $300 of additional mortgage payment improves near-term cash flow by $500. It does not prove savings if repayment stretches from a few years to decades.
Use the cash-out debt planner →Related questions
Check the original guidance
Requirements and availability can change. Confirm the program and lender terms for your application.