How to Roll Credit Card Debt Into a Mortgage

Weigh the consequences before you roll credit card debt into your mortgage.

Weigh the consequences before you roll credit card debt into your mortgage.

You'll need to get yourself a cash-out refinance loan if you want to roll pricey credit card debt into your mortgage. These refi deals allow homeowners to access some of the equity they've built up in their properties. If you qualify, your new home loan provider will provide enough cash to clear your current mortgage, plus a little extra you use use to wipe out your credit card debt.

Calculate the amount of equity you've built up in your home. Your equity is the difference between what you owe on your mortgage and the value of your property. You'll typically need to own at least 10 percent of your home to qualify for a cash-out refinance deal, according to GetSmart. If you don't have enough equity, you'll have to hold tight until you've built up a little more. Consider having your home appraised if you're not sure what it's worth.

Check out your credit reports. Make sure none of them have any incorrect info that could mess up your chances of landing a refinance deal. You can grab your basic reports for free from If you find any errors, contact the bureau that's reporting them to get things sorted before applying for your cash-out refi.

Shop around for the most competitive cash-out deal on price comparisons sites and through brokers. You can also approach lenders directly for quotes. If you can't find a loan that beats the rate you're paying on your current mortgage, you might as well forget the whole thing.

Work out if you wouldn't be better off leaving things as they are and making an effort to pay down your cards more quickly. Use online loan and credit card calculators to figure out how much you'll end up paying in interest if you were to roll your card debt into a new mortgage. Slamming a big chunk of credit card debt onto a 30-year mortgage could be pretty costly, no matter how low a rate you're able to grab.

Apply for a refinance loan. Bank your cash-out lump sum if you're successful and clear your card debts.


  • You'll need a pretty healthy credit score to get a cheap cash-out refinance deal.
  • Whacking your debt onto a new credit card that offers a 0 percent introductory rate could work out a lot cheaper if you can pay what you owe before your lender starts charging you interest.


  • You'll have to pay fees when you take out a cash-out refi. A cash-out deal could cost you an extra 3 percent of the value of your loan on top of other lender and processing charges, according to "SmartMoney."

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About the Author

Michael Roennevig has been a journalist since 2003. He has written on politics, the arts, travel and society for publications such as "The Big Issue" and "Which?" Roennevig holds a Bachelor of Arts in journalism from the Surrey Institute and a postgraduate diploma from the National Council for the Training of Journalists at City College, Brighton.

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