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Using Home Equity and a Hard Money Loan for Debt Consolidation

Using Home Equity And A Hard Money Loan For Debt Consolidation

Assuming you have enough equity in your home, accessing it to pay off much higher consumer debt is a viable and cheaper alternative.  Paying off high-interest credit cards or high-rate loans with a lower-interest home loan makes sense for many borrowers. However, as with any choice, there are Pros and Cons to be considered.  Let’s look at each:


  • You will have one payment instead of many smaller credit card payments.
  • You will know when your debt will be paid off.
  • Even with a hard money loan, your interest rate will be lower.
  • Your interest rate will remain stable throughout the life of the loan.
  • Hard money loans can be obtained in less than 30 days.


  • Your home becomes collateral.
  • You want to know the lender fees and closing costs associated with a new home loan.
  • If you do not stop using your credit cards (or have a more efficient way of tracking use and monthly paying them down) you run the risk of falling back into debt again. 

Bottom Line:

Even if your credit score is “in the tank”, Sun Pacific Mortgage, a reputable hard money lender in California for 30+ years, can offer you a solution to improve your financial health.  

We make our decision regarding credit worthiness based on your ability to pay back the loan and the amount of equity in the real estate being used as collateral.  Give us a call at 707-523-2099 to discuss your situation and possible solution to high interest consumer credit.

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“The Guy In The White Hat – Your Hard Money Lender”. Broker and Co-Owner of Sun Pacific Mortgage & Real Estate, family owned and operated in Sonoma County California since 1988.