Home equity loans and HELOCs for debt consolidation
A home equity loan or HELOC can combine several balances into one payment. It's secured by your home, so debt that was unsecured, like credit cards, becomes debt your home backs. Here's what to weigh and how checking your options with Lendara works.
What to expect consolidating debt with home equity
- Moving card or personal loan balances onto your home means missed payments could put your home at risk, where before they couldn't. Weigh that risk alongside any difference in cost.
- An unsecured debt consolidation loan or a balance transfer card is worth comparing. List every balance with its APR and payment first, so you know the baseline any offer has to beat.
- How much you can borrow depends on your home's value, your existing mortgage balance and each partner's own criteria, which usually include your credit history and income.
- A home equity loan or HELOC is secured by your home. If you don't make the payments, you could lose your home, so make sure the payment fits your budget before you apply.
Estimate a home equity loan payment
Enter an amount, a term and an APR to see an illustrative fixed monthly payment and total interest.
Estimates only, based on the numbers you enter. Not an offer of credit. Lendara is not a lender.
How checking your options works
When you check your options for home equity for debt consolidation through Lendara, you answer a few questions about your home, your current mortgage, your income and the amount you want.
If participating lenders have options for you, you can compare them side by side: APR, fees, closing costs, whether the rate is fixed or variable, and the term. Nothing is accepted until you choose an offer.
If you decide to apply, the lender reviews your application, may check your credit and may require an appraisal of your home, and decides whether to approve you and on what terms. Lendara doesn't make that decision.
Frequently asked questions
Is it safe to use home equity to pay off credit cards?
It carries more risk than card debt, because the new loan is secured by your home and missed payments could lead to foreclosure. It can make sense only if the payment fits your budget and you avoid building the card balances back up.
How does a home equity loan compare with a debt consolidation loan?
A debt consolidation loan is usually unsecured; a home equity loan or HELOC is secured by your home. Compare the APR, fees, term and total cost of each, and the risk to your home.
Is Lendara a lender?
No. Lendara is a free marketplace that connects you with participating lenders. We don't make credit decisions or lend money.
Related guides
- How to Compare Debt Consolidation Loan Offers
How to compare debt consolidation loan offers on APR, origination fees, term length, total cost and prepayment penalties before you consolidate.
- Home Equity Loan vs. HELOC: What to Compare
How a home equity loan differs from a HELOC, what it means that your home secures the debt, and the details worth comparing before you borrow against your equity.
- How to Compare the Total Cost of a Loan (Not Just the Monthly Payment)
Why the lowest monthly payment isn't always the least expensive loan, and a step-by-step way to compare offers by APR, fees, term and the total you'll repay.
Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order. Lendara is a marketplace, not a lender, and does not make credit decisions. Home equity loans and HELOCs are secured by your home, and you could lose your home if you do not repay. Rates and terms vary by lender and are determined by the lender; HELOC rates may be variable. Applying with a lender may result in a hard inquiry and may require an appraisal. We do not guarantee approval, rates or savings.