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Debt consolidation

Mortgage debt consolidation calculator for brokers who want the whole debt picture up front

It rolls a homeowner's credit cards, car loans and other balances into a new mortgage, then compares the new single payment with what they pay today and shows the monthly savings, new loan amount and total interest on the new loan. The broker receives a lead that already lists every monthly obligation the borrower wants gone.

The rare lead form where a homeowner hands you their monthly debt load before the first call.

  • 6 inputs
  • 6 results
  • Included on every plan
  • 6 languages
Start free on Originator What the numbers tell you about the borrower
Live calculator

This is the calculator your visitors use. Enter numbers to see it work.

Refinance & Payoff

What is going on when a homeowner runs a debt consolidation calculator?

Usually monthly strain. Card minimums, a car payment and a personal loan add up, and the homeowner knows they have equity sitting in the house.

Say they owe $240,000 on the mortgage at $1,500 a month in principal and interest, plus $45,000 of other debt costing $1,350 a month. Rolling it all into a $285,000 mortgage at 6.875% over 30 years gives a payment near $1,872, roughly $978 a month less than today in this illustrative case. That relief is real. What they may not have weighed is that the card debt is now spread over 30 years and secured by their home. Many are embarrassed about the balances, so tone matters on the first call.

How do you work a debt consolidation lead responsibly?

Start from the numbers they gave you. Other Debt to Consolidate and Current Payments on Other Debt tell you how much is being restructured and what it costs them monthly; Current Mortgage Balance and the new loan amount tell you the size of the refinance. What the calculator does not capture is home value, so your first question is about that, because cash-out limits decide whether the full $45,000 fits.

This lead is also a back-end DTI story. Replacing $1,350 of monthly debt payments with roughly $372 of added mortgage payment can change how a borrower's debt-to-income ratio looks, which you can model in the DTI calculator before you call.

Be the advisor who shows Total Interest on New Loan next to the savings. Then suggest a guardrail: keep paying something close to the old debt payments toward principal, or choose a shorter term, so the consolidation does not turn five years of card debt into thirty years of mortgage interest. Send these leads to their own nurture via Zapier or Make if HighLevel is not your CRM; the tone should be supportive, not urgent.

What arrives in your CRM

What the numbers tell you about the borrower

  • Other Debt to ConsolidateThe size of the problem. Balances that are large relative to the mortgage need a home-value check immediately, since cash-out limits may only cover part of them.
  • Current Payments on Other DebtMonthly pressure on the household budget. A high payment on a modest balance suggests short-term or high-rate debt, where consolidation gives the most relief and the clearest DTI change.
  • Monthly SavingsThe headline the borrower will remember. A large figure creates motivation; your job is to set it beside the total interest so the decision is made with both numbers.
  • Current Mortgage Payment (P&I)Compared with the balance, it lets you estimate their current rate. A low implied rate means consolidation reprices cheap mortgage debt, and a second-lien option may be the better first conversation.

A first message that uses their numbers

What is a respectful first message for a consolidation lead?

Hi {first name}, thanks for sharing your numbers. Combining those payments can free up real monthly cash, and there are a few ways to do it depending on your home's value and your current rate. Would you like me to put together a simple side-by-side, including the long-term cost, before you decide anything?

Make sure borrowers understand that consolidating converts unsecured debt into debt secured by their home; avoid language that promises debt relief or credit repair.

Where this calculator earns its place

  1. 01

    Homeowner page about paying off credit cards with home equity

    Search traffic there is already weighing this exact decision and will enter real balances.

  2. 02

    Past-client email when card rates are high

    Existing clients with equity can see whether consolidation makes sense without feeling sold to.

  3. 03

    Next to the cash-out refinance calculator in a tabbed widget

    Borrowers can switch between a general cash-out view and a debt-focused one on the same page.

Limits worth knowing

  • Closing costs are not included, so the real loan amount and payment will be somewhat higher if costs are financed.
  • Monthly savings measures cash flow, not cost; stretching short-term debt over a 30-year mortgage can raise total interest considerably.
  • Home value is not an input, so the calculator cannot tell whether the requested amount fits within cash-out LTV limits.

Calculator disclaimer: Estimates only. Consolidating shorter-term debt into a long mortgage can lower monthly payments but increase total interest paid over time, and it secures unsecured debt against your home. Closing costs are not included. Consult a financial professional.

Definitions in the calculator

Cash-out refinance
Replacing a mortgage with a larger new one and using the difference for other purposes, here to pay off other debts. The new loan amount in this calculator is the current mortgage balance plus the debt being consolidated. Lenders cap how much equity can be taken out, and closing costs apply but are not included here.
Debt consolidation
Combining several debts into one loan with a single payment. Rolling credit cards and car loans into a mortgage usually lowers the monthly payment because the rate is lower and the term is much longer. The trade-off is that short-term debt is repaid over decades, which can raise total interest, and it becomes secured by your home.
Monthly savings
Your current mortgage payment plus current payments on the other debts, minus the new mortgage payment. It measures cash-flow relief, not total cost. A large monthly saving can coexist with more interest over the life of the loan, so it is worth reading alongside the total interest on the new loan.
Principal and interest
The part of a mortgage payment that repays the loan and pays interest, excluding property taxes, homeowners insurance and mortgage insurance. Both the current and new mortgage payments in this calculator are principal and interest only. Escrow costs would generally stay similar after refinancing, so leaving them out keeps the comparison even.
Total interest on new loan
All the interest paid over the full term of the new consolidated mortgage if it runs to maturity: total payments minus the new loan amount. Because it includes interest on both the old mortgage balance and the consolidated debts over a long term, it is often larger than the interest those debts would have cost on their own schedules.
Secured debt
A loan backed by collateral that the lender can claim if payments stop, such as a mortgage secured by a home. Credit cards are unsecured. Consolidating them into a mortgage converts unsecured debt into debt tied to your house, so falling behind can put the home at risk rather than only affecting credit.
Closing costs
Fees paid to complete a refinance, such as origination, appraisal, title and recording charges. This calculator does not include them. They are either paid in cash or added to the new loan; if added, the balance and payment rise. Dividing closing costs by the monthly savings gives a rough number of months to recover them.
Loan term
The number of years over which the new consolidated mortgage is repaid. A longer term lowers the monthly payment but raises total interest. Choosing a shorter term than your remaining mortgage, or paying extra each month, can keep much of the rate benefit while limiting how long the consolidated debt is carried.
Loan-to-value ratio (LTV)
The new loan amount divided by the home’s appraised value, as a percent. Adding other debts to the mortgage raises it. Lenders set a maximum LTV for cash-out refinances, which limits how much debt can be consolidated, and a higher LTV can bring a higher rate or mortgage insurance.

Terms on this page

Pairs well with

Debt-to-Income Calculator

Three inputs, two ratios and an honest assessment, so the first thing you know about a lead is whether the numbers work.

HELOC Calculator

Homeowners who model a HELOC are telling you how much equity they want to tap and roughly what for.

FAQ · 8 questions

Questions about this calculator

How does the calculator work out my monthly savings?

It adds your current mortgage payment to the payments on the debts you want to consolidate, then subtracts the new mortgage payment. If you pay $1,500 plus $1,350 today and the new payment is $1,872, the savings are about $978 a month. Taxes and insurance are excluded from both sides.

Why is total interest on the new loan so much higher than my debts cost?

Because short-term debts are now repaid over the full mortgage term, and interest accrues on the old mortgage balance too. A card you might have paid off in five years can end up costing interest for thirty. Paying extra toward principal or choosing a shorter term reduces the total substantially.

Is consolidating credit cards into my mortgage risky?

It changes the type of risk. Credit cards are unsecured, so missing payments damages credit but does not put the home at stake. Once the balances are inside the mortgage, they are secured by the property. It can still be a sound choice, but only if spending habits that created the balances are under control.

Do I need enough equity to consolidate all my debt?

Yes. The new loan must fit within the lender's maximum loan-to-value for a cash-out refinance, which depends on program and occupancy. This calculator does not ask for home value, so check the new loan amount against your home's estimated value before assuming every balance can be included.

How does a consolidation scenario affect a borrower's DTI?

Often favorably. Paying off cards and installment loans removes those monthly payments from the back-end ratio, while the mortgage payment rises by a smaller amount. The net change can improve DTI, which matters if the borrower plans another purchase later. Run the before-and-after in a DTI calculator to see the effect.

What should a loan officer ask first when this lead arrives?

Ask for an estimate of the home's value and the current mortgage rate. Value decides whether the debt fits within cash-out limits; the rate tells you whether refinancing the first mortgage makes sense or whether a HELOC or home equity loan would cost less. Both questions are friendly and show you read their numbers.

Can I route consolidation leads differently from purchase leads?

Yes. On the Producer and Brokerage plans each calculator can post to its own webhook, so this one can trigger a separate HighLevel workflow or a Zapier or Make scenario. That lets you send a gentler, education-first sequence to homeowners dealing with debt rather than a purchase-oriented drip.

Are there marketing rules to watch with debt consolidation offers?

Yes. Avoid claims like "erase your debt" or anything resembling credit repair, and be careful with advertised payments or savings, which can require additional disclosures. Show your NMLS ID and licensing information, keep the page educational, and have compliance review any consolidation ad before it runs.

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