FAQ: Why would I ever give up my low mortgage rate?

A low mortgage rate is great – but it’s only part of the picture.

Your blended rate reflects all your debt, including credit cards, auto loans, and Buy Now, Pay Later balances. Even with a low mortgage rate, higher-interest debt elsewhere could be costing you more than you realize. By refinancing or using your home’s equity to pay off higher-interest loans, you could reduce your overall monthly payments and save on interest over time.

It’s also important to consider your financial goals. Using a low-rate mortgage as leverage to pay off high-interest debt can free up cash for investments, education, or other priorities. The key is evaluating the total cost of borrowing across all your obligations, rather than focusing solely on your mortgage rate.

In many cases, strategically giving up a low mortgage rate in favor of debt consolidation can improve your overall financial health and peace of mind.

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