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Home Equity Loan for Debt Consolidation Calculator — Should You Use Your Home?

See whether rolling high-interest credit card and other debt into a single fixed-rate home equity loan would lower your monthly payment and total interest — and understand what it means to move unsecured debt onto your home.

Quick answer: Using home equity for debt consolidation can lower APR and payment, but it converts unsecured debt into debt secured by your home. Compare savings with foreclosure and re-borrowing risk.

New Monthly Payment — Home Equity Loan

$313Fixed monthly payment on the consolidated home equity loan

New Monthly Payment — Home Equity Loan

$313Fixed monthly payment on the consolidated home equity loan

Total Debt to Consolidate

$25,000

Your Current Blended APR

20.56%The weighted-average rate across the debts you would roll in

Home Equity Loan Amount (incl. fees)

$25,500The balance plus closing costs rolled into the loan

Total Paid Over the Loan Term

$37,532Every payment on the home equity loan added together

Change in Monthly Payment

-$537Negative means the home equity loan costs less per month

Total Interest on the Home Equity Loan

$12,032Interest over the full term, plus the financed closing costs

Rate Reduction From Consolidating

12.31%How far the fixed home equity rate sits below your blended APR

What to do next

See current home equity loan rates

Your action plan

1
Compare the leading option against your current setup
See whether consolidating credit card and other high-interest debt into a fixed-rate home equity loan would lower your payment and total interest.
2
Pressure-test one alternate scenario before deciding
Assumptions change the answer, especially when rates, taxes, or timing matter.
3
Save the result to Money Map or use the linked next action
Turn the result into a prioritized action instead of treating it as a one-off number.

See current home equity loan rates

This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

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Rate authority hub

Compare

See current home equity loan ratesMove from calculation to current product options.

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Guide

HELOC vs Home Equity Loan vs Cash-Out Refi: Which Home Equity Strategy Wins?HELOC: variable rate, flexible draw. Home equity loan: fixed rate, lump sum. Cash-out refi: replaces your mortgage with a larger one. Here's how to choose the right home equity strategy in 2026.

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Today's HELOC rates

Reviewed Jul 6, 2026 · Methodology

Rates shown are representative APRs for illustrative purposes. Actual rates vary significantly by credit score, loan amount, down payment, points paid, property type, state, and lender underwriting. Verify current rates directly with each lender before applying. Ranked using the SwitchWize methodology. SwitchWize may earn a referral fee if you proceed through a link above. Learn more

Frequently Asked Questions

Everything you need to know.

Is it a good idea to use a home equity loan to pay off credit cards?

It can lower your rate and monthly payment because home equity loan rates are far below typical credit card APRs. The trade-off is that you move unsecured debt onto your home — if you cannot pay, the home is at risk. It works best when you have stable income and have addressed the spending that created the debt. This is an estimate, not financial advice.

How much can I save by consolidating debt with home equity?

Savings depend on the gap between your current blended APR and the home equity loan rate, the loan term, and the origination cost. The calculator shows your rate reduction and the change in monthly payment. A lower payment over a longer term can still mean more total interest, so check both numbers.

What are the risks of a home equity debt consolidation loan?

The main risk is that the debt becomes secured by your home, so missed payments can lead to foreclosure. Other risks: a longer term can increase total interest even at a lower rate, closing costs add to the balance, and freeing up credit cards can tempt new spending that recreates the debt.

Does consolidating debt with a home equity loan hurt my credit?

Opening the loan adds a hard inquiry and a new account, which can dip your score briefly. Paying down high credit card balances usually helps your credit utilization, which can raise your score. Closing the old cards entirely can reduce your available credit and shorten your average account age.

Home equity loan vs. a personal loan for debt consolidation?

A home equity loan usually offers a lower rate and longer term but is secured by your home and carries closing costs. A personal loan has a higher rate and shorter term but is unsecured — your home is not at risk. Compare both against your blended APR before deciding.

Is the Home Equity Loan for Debt Consolidation Calculator — Should You Use Your Home? free to use?

Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.

Does using the Home Equity Loan for Debt Consolidation Calculator — Should You Use Your Home? affect my credit score?

No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.

Are the results personalized financial advice?

No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.

What should I do after seeing the result?

Use the recommendation module on this page to see current home equity loan rates, or run Money Map to compare this debt payoff decision with your other opportunities.

How does SwitchWize choose related offers?

Related offers are matched by the calculator surface (heloc) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.

How fresh are the rates and offers shown?

Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.

Where can I see the ranking methodology?

The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.

Can Money Map use this result?

Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

Credit card APRs sit above 23% on average, while a home equity loan is fixed and typically far lower. Consolidating can cut both the monthly payment and the total interest — but it comes with a real trade-off: it converts unsecured debt, which a lender cannot take your home over, into debt secured by your home. A longer term can also lower the monthly payment while quietly increasing total interest. This calculator shows the full picture — the new payment, the rate reduction, and the total interest — so the decision is made on numbers, not hope.