What types of debt can you consolidate with a cash-out refinance?

You can consolidate most unsecured and some secured debts, including credit card debt (highest priority due to 20%+ rates), personal loans, auto loans, medical bills, and other unsecured obligations. The strategy works best when moving from higher-interest debt to a lower mortgage rate. Consult with RHMC to confirm which of your specific debts qualify and make the most financial sense.

Will a cash-out refinance hurt my credit score?

Initially, your credit score may dip slightly due to the hard inquiry and new account. However, paying off credit cards reduces your credit utilization ratio, which often improves your score over time. RHMC's loan specialists can explain how refinancing might affect your credit.

How long does a cash-out refinance take?

The process typically takes 30 to 45 days from application to closing. Factors like appraisal scheduling, documentation completeness, and underwriting timelines affect this duration. RHMC manages your loan under one roof, which can streamline the process.

Is the interest on a cash-out refinance tax deductible?

Mortgage interest is only deductible if the funds are used to buy, build, or substantially improve your home. Using cash-out proceeds for debt consolidation generally doesn't qualify for the deduction. Consult a tax professional for personalized advice.

What happens if I can't make payments on my new mortgage?

Missing mortgage payments can lead to late fees, credit damage, and potentially foreclosure. Unlike credit card debt, your home serves as collateral. RHMC encourages borrowers to carefully evaluate their ability to afford the new payment before proceeding.

Should I choose a fixed or adjustable rate for my cash-out refinance?

Fixed rates offer payment predictability over the life of the loan. Adjustable rates may start lower but can increase over time. RHMC's loan officers help you evaluate which option aligns with your financial goals and risk tolerance.

Cash-Out Refinance for Debt Consolidation in 2026

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