There are a couple of ways you can transfer your credit card debt to your home loan.
The two options that come to mind immediately are:
i) A home equity loan or a home equity line of credit (HELOC)
A home equity loan is very similar to a standard residential mortgage, and even more similar to a home equity line of credit loan. However, a home equity loan has very distinct differences that you need to be aware of if you want to get the best rate on a home equity loan. There are two types of home equity debt: home equity loans and home equity lines of credit, also known as HELOCs. Both are sometimes referred to as second mortgages, because they are secured by your property, just like the original, or primary, mortgage. Usually, mortgages are set up to be repaid over 30 years and equity loans and lines of credit often have a repayment period of 15 years, although it might be as short as five and as long as 30 years.
To find out if it is possible for you to get a home equity loan or a HELOC you need to check how much equity you have. Equity is the difference between how much the home is worth and how much you owe on the mortgage. If you have more than $10,000 in equity, you could possibly apply for a home equity loan and use the funds to pay off your credit card debt.
ii) A cash out refinance.
With cash-out refinancing, you refinance your mortgage for more than you currently owe, then pocket the difference. Here's an example: Let's say you still owe $80,000 on a $150,000 house, and you want a lower interest rate. You also want $20,000 cash, maybe to spend on your child's first semester at Princeton. You can refinance the mortgage for $100,000. Ideally, you get a better rate on the $80,000 that you owe on the house and you get a check for $20,000 to spend as you wish.
For more information about refinance, please visit our refinance information page.
I hope the information provided helps you Find. Learn. Save.