I get where you’re coming from, but sometimes consolidating high-interest credit card debt into a mortgage can make sense, especially if someone’s drowning in 20%+ rates. The key is making sure it’s a one-time fix, not a repeat cycle. Still, those closing costs are no joke... and you’re right, the risk shifts to your home. It’s definitely not a move for everyone.
Rolling credit cards into a new mortgage: worth it?
The key is making sure it’s a one-time fix, not a repeat cycle. Still, those closing costs are no joke... and you’re right, the risk shifts to your home.
You nailed it with that. The math can look good on paper—swapping 20%+ interest for a much lower mortgage rate is tempting, especially if the monthly payment drops. But yeah, the closing costs can eat up a lot of the savings if you’re not careful. I’ve seen people get excited about the lower rate, only to realize they’re paying thousands upfront just to move the debt around.
The risk to your home is the part that always makes me pause. Credit card debt is unsecured, but once it’s rolled into a mortgage, you’re literally betting your house on your ability to pay it off. That’s a big shift, and not everyone really thinks through what that means if something goes sideways.
I do think, for some folks, it’s a solid move—especially if they’ve got a plan to avoid racking up new card balances. I’ve watched a friend do this after a rough patch, and it gave him breathing room to get back on track. But he also cut up his cards and set up a strict budget, so it didn’t become a revolving door.
One thing I’d add: sometimes people forget to factor in how much longer they’ll be paying off that debt. Stretching out what was a few years of credit card payments into a 30-year mortgage can mean paying more in the long run, even at a lower rate. It’s worth running the numbers both ways.
Anyway, you’re right—it’s not a one-size-fits-all solution. But for someone who’s disciplined and really wants to break the cycle, it can be a useful tool. Just gotta go in with eyes wide open.
That’s a good point about stretching out the debt. I’ve always wondered if people actually stick to their payoff plans after rolling debt into a mortgage, or if it just becomes “out of sight, out of mind.” Has anyone here regretted doing it, or did it really help long-term?
Rolling credit cards into a mortgage is like putting your messy closet behind a locked door—sure, it looks tidy, but you still owe the stuff inside. I’ve seen folks save on interest, but a lot end up just racking up new card debt because the pressure’s off. If you’re disciplined, it can help, but if not... well, you just end up with a bigger mortgage and the same old habits. It’s kind of a “know thyself” situation.
I get what you’re saying, but I’ve seen people use the refi to roll in their cards and actually come out ahead—if they’re strict about not running up the cards again. The trick is having a plan, not just hoping you’ll magically change spending habits. I usually tell people to write out exactly what they owe, what the new payment will be, and how long it’ll take to pay off. Have you ever tried mapping out the numbers before making a move like this? Sometimes seeing it in black and white changes your perspective.
