Compare monthly relief with the full cost of moving debt into your mortgage
Model your current first mortgage and up to three fixed debts against a proposed full cash-out refinance. The calculator keeps payment relief, five-year cost, lifetime cost, payoff timing, and home-equity risk in the same decision.
Read this before treating a lower payment as savings
Home-security risk: This structure may replace unsecured consumer debt with debt secured by your home. If you do not repay the home-secured loan or meet its terms, the lender may foreclose and sell the home.
Term and total cost: A lower monthly payment is not the same as lower total cost. Extending short-term debt over a longer mortgage term can increase total interest and fees even when the new interest rate and monthly payment are lower.
Texas homestead rules: A cash-out refinance secured by a Texas homestead may be governed by Article XVI, Section 50(a)(6) of the Texas Constitution. The new principal plus all other liens against the homestead generally may not exceed 80% of fair market value. Constitutional fee, notice, timing, lender, closing-location, and rescission requirements also apply.
Valuation and DTI limits: The home value is only an estimate until the required valuation is completed. Paying debts at or before closing does not guarantee that their payments will be excluded from DTI.
Model boundary: Results assume fixed-rate, fixed-payment debts and fixed-rate mortgages. The calculator does not model changing credit-card minimums, ARMs, HELOC draws, interest-only periods, balloons, mortgage insurance, tax effects, or the interest and payoff schedule for other liens that remain.
How to read the result
Start with monthly outflow, then refuse to stop there. The five-year borrowing-cost comparison uses interest through month 60 plus the loan costs entered. The lifetime comparison carries each fixed obligation through scheduled payoff. Principal is tracked separately and is never labeled a borrowing cost.
The accelerated path asks a different question: what happens if the refinance closes but the homeowner keeps sending the old combined monthly outflow toward the new loan? It can reveal the cost of using payment relief for flexibility while preserving a faster payoff target. It is still a projection, not a servicing instruction.
Primary sources and underwriting boundaries
- CFPB: Compare Loan Estimates, including the five-year cost concept
- CFPB: The difference between an interest rate and APR
- CFPB: What to know before consolidating credit-card debt
- Texas Constitution, Article XVI, Section 50
- Fannie Mae Selling Guide B3-6-02: Debt-to-Income Ratios
- Fannie Mae Selling Guide B3-6-07: Debts Paid Off At or Prior to Closing
Fannie Mae guidance is one agency framework, not a universal promise. Program, lender, documentation, automated-underwriting, and complete-file requirements control the actual treatment.
Debt consolidation refinance calculator questions
What does this debt consolidation refinance calculator compare?
It compares the remaining first mortgage plus up to three fixed-rate, fixed-payment debts with one proposed full cash-out refinance. It shows estimated monthly outflow, five-year borrowing cost, scheduled lifetime borrowing cost, payoff timing, combined loan-to-value, and modeled debt-to-income ratios when gross income is entered.
Does a lower monthly payment mean the refinance costs less?
No. A lower payment can come from spreading debt across a longer term. That can increase total interest and fees even when the proposed rate and monthly outflow are lower, so compare the five-year cost, scheduled lifetime cost, and payoff date together.
Why does the Texas 80% line matter?
For a Texas homestead, the proposed cash-out refinance plus liens that remain against the home generally may not exceed 80% of fair market value under Article XVI, Section 50(a)(6) of the Texas Constitution. The value entered here is only an estimate, and this calculator does not determine legal or program eligibility.
Will debts paid at closing be excluded from DTI?
Not automatically. Treatment depends on the loan program, debt type, remaining term, payoff documentation and source of funds, automated-underwriting findings, lender requirements, credit history, and the complete borrower profile. The DTI shown here uses only the obligations entered and is not an underwriting decision.
Does this calculator store my information?
No. Calculator inputs are processed only in this browser and are not stored or submitted by this calculator. Normal website analytics may record a page visit, but the calculator does not send the financial values entered.
Is this calculator a loan offer or approval?
No. It is an educational planning tool, not a loan offer, quote, application, approval, pre-qualification, commitment to lend, legal advice, or tax advice. Actual terms and eligibility require a complete review and applicable disclosures.
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