Simplify Your Debt Into One Payment.
Roll higher-interest balances into your mortgage or home equity and combine them into a single monthly payment.
Quick answer
Saxton Mortgage does. At least one conventional program we offer allows a cash-out refinance that pays off your existing mortgage with a new first mortgage on the same home. At least one borrower must have been on title for at least six months, and the first mortgage being paid off must be at least 12 months old.
Cash-out rules for paying off debt
Fannie Mae sets waiting periods before your home equity can clear other balances.
- Roll higher cost balances into one mortgage payment
- Your current first mortgage must be at least 12 months old
- Non-mortgage debt payoffs capped at $250,000 at one program*
- Unsecured debt becomes debt secured against your home
- Six months of reserves once DTI tops 45% in DU
- Consumer accounts free of 60-day lates for 6 months*
Equity for any purpose
Cards paid at closing leave DTI
Paid accounts can stay open
Student loans paid at closing
Investment homes cannot use it*
Cash in hand capped at $5,000*
What is the Saxton Debt Consolidation Refinance?
Rolling higher cost consumer debt into home financing
At one program, debt consolidation is treated as cash-out but carries its own rules: it repays existing liens plus consumer debt, and each debt is paid through closing and listed on the closing statement*. It is open to primary residences with full or alternative documentation, with DTI at or below 50% and 3 months of reserves left after closing*.
A cash-out refinance pays off your existing mortgage with a new first mortgage on the same home. Fannie Mae allows the equity you take out to be used for any purpose, and subordinate liens of any age can be paid off in the same transaction.
Debts paid off at or before closing change how you qualify. When a revolving balance is paid off, its payment is left out of your DTI ratio, and the account can stay open under Fannie Mae rules. Learn more about second home and investment property.
Why choose the Saxton Debt Consolidation Refinance?
What a lender checks before your home equity pays off cards, loans and liens.
Card Rates Versus Mortgage Rates
The gap between what revolving debt costs and what a mortgage costs is the entire argument for doing this.
January Is Busy
Holiday balances arrive in January, which is when most people start looking for a way out of them.
Every Borrower Lives There
One debt consolidation guide bars anyone on the loan who will not live in the home*. That guide takes a second home only with traditional full documentation*.
Secured, Not Unsecured
This moves unsecured debt onto your home. That lowers the rate and raises the stakes, and you should hear both halves.
Do The Total, Not The Payment
A lower monthly payment over a longer period can still cost more overall. Ask for the total, not just the installment.
A Second Lien Instead
If your first mortgage rate is low, a HELOC may consolidate the same debt without touching it.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about consolidating debt into your mortgage.
Saxton Mortgage does. At least one conventional program we offer allows a cash-out refinance that pays off your existing mortgage with a new first mortgage on the same home. At least one borrower must have been on title for at least six months, and the first mortgage being paid off must be at least 12 months old.
Yes, one debt consolidation guide allows it once the listing is pulled no later than your application date*. You also confirm in writing why it was listed and that you intend to live there. A listing in the prior six months means the lower of the lowest list price or the appraisal sets the value*.
Yes. Fannie Mae requires the first mortgage being paid off to be at least 12 months old, measured from its note date to the note date of the new loan. The rule does not apply to second liens being paid off or to buying out a co-owner under a legal agreement.
No. Fannie Mae says a revolving account paid off at or before closing does not have to be closed for its payment to be excluded from your DTI ratio. Whether you keep the card open afterward is your decision.
Yes. Fannie Mae has a student loan cash-out feature that waives its cash-out price adjustment when the rules are met. Proceeds go directly to the student loan servicer at closing, a borrower on the new loan must owe it, and each student loan must be paid in full.
Yes. Fannie Mae requires delinquent credit such as judgments, tax liens and mechanic’s liens to be paid off at or before closing. Cash-out proceeds can cover them, since the equity you take out may be used for any purpose.
Sometimes. For loans run through Fannie Mae’s DU system, a DTI ratio above 45% on a cash-out refinance calls for six months of reserves. Revolving balances paid off at closing come out of that ratio, so we run the numbers both ways before you apply.
Not always. On manually underwritten loans, Fannie Mae lets non-medical collections and charge-offs remain if each account is under $250 or all of them total $1,000 or less. Balances above those limits must be paid off at or before closing.
Find out what you qualify for
List the balances you want gone, and we will check seasoning, reserves and DTI ahead of your cash-out application.
Get Pre-Qualified- Consumer Financial Protection Bureau, mortgages
- Consumer Financial Protection Bureau, buying a house: tools and resources for homebuyers
*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Loan limits follow the annual conforming limits set by county. Down payment and cash-out limits vary by occupancy, credit score, and documentation type. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.