Are rising credit card balances weighing you down?

With interest rates on many credit cards soaring past 18%, it’s no surprise that monthly payments can feel like you’re running on a treadmill — exhausting effort, little progress. If you’re a homeowner with equity, there’s a smarter way to take control of your finances: a cash-out refinance.

Let’s talk about how it works — and how it could save you thousands over time.

---

What Is a Cash-Out Refinance?

A cash-out refinance is when you replace your current mortgage with a new one — typically at a lower rate or with better terms — and take out some of your home equity in cash.

For example, if your home is worth $400,000 and you owe $250,000, you might be able to refinance for $300,000, take the $50,000 difference in cash, and use that money to pay off high-interest debt like credit cards.

---

Why Use It to Pay Off Credit Cards?

Here’s why using a cash-out refinance to eliminate credit card debt makes financial sense:

Lower Interest Rates

Mortgage rates are typically much lower than credit card rates. Instead of paying 18%+ in interest, you could shift that balance to a loan with a rate closer to 7-8% or less (depending on your credit and market conditions).

One Manageable Monthly Payment

Juggling multiple credit card due dates and balances? With a refinance, you consolidate everything into one monthly payment — no more keeping track of six different bills.

Free Up Monthly Cash Flow

By replacing high-interest debt with a lower-rate loan, your monthly payments decrease, often by hundreds of dollars. That means more money in your pocket each month for savings, investments, or just breathing room.

Interest May Be Tax-Deductible

Mortgage interest may be tax-deductible (consult your tax advisor), unlike credit card interest, which is not. That’s another potential savings bonus.

---

Real-World Savings Example

Let’s say you have $40,000 in credit card debt at an average 20% APR. That’s costing you around $800/month in interest alone, not even touching the principal.

Refinancing that $40,000 into your mortgage at a 7% rate over 30 years could drop your monthly cost to about $266/month. That’s a difference of over $500/month — or $6,000/year — back in your wallet.

---

Is a Cash-Out Refinance Right for You?

It depends on your individual situation. As a Senior Loan Officer with over 20 years of experience, I’ll work with you one-on-one to evaluate your equity, credit profile, and long-term goals to see if a cash-out refinance makes sense.

Even with today’s rates higher than we saw a few years ago, the math often still favors refinancing when compared to climbing credit card balances and 18%+ interest rates.

---

Let’s Talk About Your Options

You’ve worked hard to build equity in your home — now let that equity work for you. If you’re feeling overwhelmed by credit card debt, there’s a better path forward.

Let’s explore whether a cash-out refinance can be your solution.

Contact me, Bruce Singer, at 702-217-5525
Email: bruce@visionhomemtg.com
Visit: mortgageloansbybruce.com