If you need a new way to consolidate debt, you may be able to take advantage of a Cash-Out Refinance by using money from the equity you’ve built in your home to pay off your high-interest debt. Mortgage rates are much lower than other interest rates, providing the perfect solution to replace your high-interest debt with a low-interest home loan. Check out the top 7 types of debt to consolidate with a Cash-Out Refinance.

Plus, as a member of the AmeriHome family, you’re eligible for a free mortgage checkup. See how you can start saving today with a Cash-Out Refinance Loan.*

If you have credit card debt, you’re not alone. With average credit card interest rates around 19%, carrying a balance can become expensive fast. In many cases, making only the minimum payment means a large portion of your payment goes toward interest rather than paying down the debt.

A Cash-Out Refinance lets you access your available home equity and use the funds to pay off high-interest credit card balances. By consolidating multiple debts into one loan, you may be able to lower your overall interest costs, simplify your monthly finances, and free up cash for other priorities. For homeowners with a lot of credit card debt, a Cash Out Refinance can help them take control of their finances and make their equity work harder for them.

A medical emergency, hospital stay, or unexpected procedure can leave behind more than just stress. It can also result in significant medical bills. Whether the expense was related to an accident, illness, or pregnancy, healthcare costs can add up quickly and put pressure on your finances.

A Cash-Out Refinance may help by allowing you to tap into your home’s equity and use the funds to pay off outstanding medical debt. Consolidating multiple balances into a single payment can simplify your finances, reduce financial stress, and help you focus on moving forward instead of managing past medical expenses.

Higher education can be a valuable investment, but student loan payments can follow you for years after graduation. If monthly student loan bills are taking a bite out of your budget, a Cash-Out Refinance may help.

By tapping into your available home equity, you can use the funds to pay off student loans and other outstanding debts. Consolidating debt into a single payment may simplify your finances, reduce your monthly debt burden, and help you focus on what’s next instead of what you still owe.

Car payments can consume a large portion of your monthly budget, especially when combined with insurance, fuel, and maintenance costs. If you’re looking for ways to free up cash each month, paying off your auto loan can be a great way to do that.

Using funds from a Cash-Out Refinance to eliminate an auto loan will reduce the number of monthly payments you manage and improve your overall cash flow. The money that was previously going toward your car payment can then be redirected toward other things, whether that’s paying down additional debt, building an emergency fund, or saving for future expenses.

Personal loans can be useful for covering major expenses, but they can also become difficult to manage when combined with other debts. Missing payments or carrying multiple loan balances can add financial stress and may affect your credit over time.

Paying off personal loans can simplify your financial picture and reduce the number of debts you need to manage each month. For homeowners looking to regain control of their finances, paying off your loan courtesy of a Cash Out Refinance can be a big step toward reducing the burden of outstanding debt.

Divorce often comes with significant financial decisions. From legal fees and settlement costs to buying out a spouse’s ownership interest in a home, the process can place unexpected demands on your finances.

For homeowners who wish to remain in their home, accessing available equity can provide a source of funds during this transition. Home equity may help cover expenses related to the divorce, support a buyout arrangement, or provide financial flexibility as you establish a new financial plan. Having access to additional funds can make it easier to move forward and focus on the next chapter of your life.

A new baby brings plenty of excitement, and expenses as well! Between nursery furniture, childcare, medical expenses, and other household needs, costs can add up quickly during the first few years.

Many homeowners choose to use available funds to prepare for these costs, make home improvements, create a financial cushion, or cover large expenses related to the new addition to the family. Having access to extra cash can provide greater peace of mind and help you focus on what matters most: enjoying time with your growing family.