Interactive Tool
Blended Mortgage Rate Calculator:
Compare Before Refinancing
Your mortgage rate may be low, but your overall debt picture could tell a different story. This calculator helps compare your current blended debt rate against a possible cash-out refinance.
Interactive Tool
Debt Consolidation Blended Rate Calculator
Enter your mortgage, other debts, and a refinance scenario to compare your current blended rate against a potential refinance.
Current Mortgage
Payment auto-calculated: $1,624/mo
Other Debts
Refinance Scenario
New Loan Amount: $405,000
Results
Current Blended Rate
4.90%
All debts weighted
New Refinance Rate
6.5%
Cash-out refi
Monthly Cash Flow
-$336
Higher per month
Total Debt Today
$375,000
Current Monthly Payments
$2,224/mo
New Mortgage Payment
$2,560/mo
Break-Even Point
N/A
Blended Rate
4.90%
Rate Difference
-1.60% ↑
Recommendation
Not Enough Savings
Debt Breakdown
Education
Why Your Mortgage Rate Is Not The Whole Story
Many homeowners only compare their current mortgage rate to a new refinance rate — but the full picture includes all of your debt.
Your Existing Mortgage Has Value
Before replacing a low-rate first mortgage, compare keeping it and borrowing separately with a second lien. Include both payments and the cost of the additional borrowing.
Use Your Own Debt Figures
Enter current balances, interest rates and payments from your statements. Default calculator entries are illustrations, not available rates or loan offers.
A Blended Rate Is Only A Starting Point
Multiply each balance by its annual interest rate, add those amounts, then divide by the total balance. This weighted average is not APR and does not account for fees, changing balances or different payoff schedules.
Monthly Cash Flow Matters
Even if the blended rate comparison is close, consolidating multiple payments into one can free up significant monthly cash flow.
A Refinance Is a Tool, Not a Solution
Whether it makes sense depends on your total debt, monthly cash flow, closing costs, loan term, discipline after payoff, and long-term goals.
Keep a low-rate first mortgage, add a HELOC, or refinance?
Compare three paths for the same amount of cash and the same time horizon. A second lien can leave your first mortgage in place; a cash-out refinance replaces it. A lower blended rate or monthly payment alone does not tell you which option costs less.
First mortgage plus HELOC
A second-lien line of credit can let you draw as needed. Review fees, any required initial draw, variable rates and payments after the draw period ends.
Explore HELOC tradeoffsFirst mortgage plus home equity loan
A closed-end loan provides a lump sum alongside your existing mortgage. Compare the second payment, rate structure, fees and payoff term.
Compare home equity loansCash-out refinance
A new mortgage replaces the first mortgage. The new terms apply to the refinanced balance, so compare closing costs and the cost of repricing the debt you already have.
Review cash-out refinancingWhat should I compare beyond the blended rate?
Ask for combined monthly payments, upfront fees, interest paid and balances remaining at the end of your expected holding period. Include possible HELOC rate and payment changes. This calculator compares existing debts with a refinance scenario; it does not model a separate HELOC or home equity loan payment schedule.
Does keeping my first mortgage remove the risk?
No. Both mortgages must be repaid. Using home equity to pay other debts moves that borrowing onto your home, which you could lose if you cannot repay. Consider alternatives and a sustainable payoff plan before borrowing.
CFPB: home equity loan and HELOC differences · Ask our Lehi team for a side-by-side review
Decision Framework
Good Fit / Bad Fit
A quick guide to whether debt consolidation through refinancing makes sense for your situation.
✅ Good Fit For Debt Consolidation Refi
- High-interest credit card debt
- Strong equity position
- Stable income
- Plan to stay in home
- Clear payoff strategy
⚠️ Probably Not A Good Fit
- Small monthly savings
- Planning to move soon
- Low equity
- Spending habits unchanged
- Closing costs too high
Important
Debt Consolidation Is A Strategy, Not A Reset Button
A cash-out refinance can lower monthly payments, but it turns short-term debt into long-term mortgage debt. Use it wisely.
Do Not Rebuild Credit Card Balances
Paying off credit cards with home equity only works if you don't run up the balances again. Otherwise you'll have more debt — and now it's secured by your home.
Understand The New Loan Term
A 30-year refinance means spreading what might have been 5-year debt across three decades. The monthly payment drops, but total interest paid may increase.
Compare Total Interest
The lower monthly payment can be misleading. Add up total interest across all debts vs. total interest on the new mortgage to see the full cost.
Keep Emergency Savings
Don't use all your equity to pay off debt. Keep a reserve for emergencies so a single event doesn't derail your finances.
Use The Savings Intentionally
If you free up $500/month, decide ahead of time where it goes — savings, retirement, college fund, or paying down the mortgage faster.
Ask Mia — Your Homeownership Coach
Personalized answers about debt consolidation and refinancing
Want Help Running The Real Numbers?
This calculator is educational. A real refinance analysis should compare loan terms, closing costs, payoff amounts, equity, credit, income, and long-term goals.
This calculator is for educational purposes only and is not a loan estimate or commitment to lend. Actual savings, costs, and eligibility depend on credit, income, assets, property type, equity, occupancy, underwriting approval, and final loan terms.
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