When homeowners think about consolidating, the first question is often which debts actually qualify. The good news is that most common high-interest consumer debts can be rolled into your mortgage. Here’s a clear rundown of what typically qualifies and how to prioritize.
Most unsecured consumer debt can be consolidated through your mortgage. That commonly includes credit card balances, unsecured lines of credit, personal loans, car loans, and other installment debts. The defining feature is that these debts usually carry higher interest rates than your mortgage — which is exactly what makes moving them worthwhile.
Not all debts are equally worth consolidating. The biggest wins come from your highest-interest balances — typically credit cards, which often charge around 20% or more. Moving those to your mortgage rate produces the largest interest savings. Lower-rate debts may still be worth folding in for simplicity, but the highest-rate balances are where consolidation does the most work.
Car loans can be consolidated, but there’s a nuance worth considering: a car is a depreciating asset, and rolling a car loan into a long mortgage amortization means paying for it over many more years. For some homeowners the lower rate and simplified payment are worth it; for others, keeping the car loan separate makes more sense. We’ll help you weigh this rather than lumping everything in automatically.
Can I consolidate just some of my debts?
Yes. You don’t have to consolidate everything — we often focus on the highest-interest balances where the savings are greatest, and leave others as-is if that’s smarter for you.
Can I include tax debt or other obligations?
Some obligations beyond standard consumer debt can sometimes be addressed through a refinance. It depends on the specifics, so it’s worth raising in a conversation about your full picture.
