Should I Consolidate My Debts?
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The calculated results are not guaranteed to be accurate and are in no way are endorsed, offerd or guaranteed by MortgageCalculators123, its affiliates, sister sites, or parent company. The information provided with these calculators is for illustrative purposes only. Any information entered can and may vary from your actual loan. Any tax results (property or income tax) are based on user imputs and cannot be considered accurate simply due the each state's and counties tax laws; we highly recommend you should seek a qualified tax advisor and loan consultant for a more specific and personalized profile. All figures including principal, terms and interest rates are strictly hypothetical.
This loan calculator will show you how much you will save by paying off your debts with a debt consolidation loan. By consolidating you generally save in two ways: 1) Since mortgage interest is deductible, and most credit cards, auto loans, etc are not, you get a tax savings boost. 2) Also, a mortgage typically has a lower interest rate than most credit cards and other loans, so you're paying less interest, which is a good thing.
Our recommendation is to pay off as many debts as possible and then close each of those accounts.
Enter all debts you wish to consolidate (Mortgage, Auto, credit cards, student loans, etc.)
NOTE: Enter principal & interest for 1st mortgage payment
*Please seek a qualified accountant and loan professional to obtain more accurate results. Tax laws change frequently. This calculator assumes you will be paying your mortgage for the term you specified above to gain the full tax benefit.
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Current
Proposed
Monthly Payments
$1,426.10
$1,040.22
Total Debts (plus any loan costs)
$167,000.00
$173,500.00
Tax Savings due to debt
consolidation
>>>>>>>>>
$6,768.71
You immediately save $385.88 per month by consolidating your debts! Assuming the average credit card or auto loan term is five years you will be saving $23,152.79. But that's not all. Since mortgage interest can be deductible and credit card interest is ordinarily not, you will save an additional $6,770.14 in taxes.
So, putting it all together, after consolidating you will save a total amount of $29,922.93
