Can I cash out some of the equity in my home to pay off credit card debt?
A cash-out refinancing can be a way to pay off high-interest debt, because interest rates on loans that are secured by your house are usually much lower. For example, your credit card debt might have an interest rate of 18 percent or more, while a home loan is more likely to be in the vicinity of six percent. Remember replacing short-term high rate debt with long-term lower rate debt may result in you paying the same amount in finance charges over the term of the long-term lower rate debt.