Is refinancing a smart way to pay off debt?

The short answer is that refinancing can be a smart choice when the numbers work in your favor. We’re here to give you clarity and guidance so you can feel confident in your next step.

Pros of refinancing a mortgage to pay off debt

Refinancing replaces your current mortgage with a new one that may have a different rate, new terms or cash out from the equity in your home. For many Colorado homeowners, that means the ability to:

• Consolidate higher‑interest debts like credit card balances or personal loans

• Reduce the number of bills you track each month

• Lower monthly payments

• Create more room in your budget

Today’s market has shifted how people think about refinancing. Instead of waiting for historically low rates, homeowners are choosing to optimize their finances and free up cash flow.

Refinancing may be a smart move if:

• You have high‑interest debt Credit cards and certain loans can carry much higher rates than a mortgage. Combining them into one loan can lead to meaningful savings.

• You want to simplify your payments Some members juggle a first mortgage and a home equity line of credit. Combining everything into one mortgage simplifies your financial picture.

• Your mortgage rate is 1/2% or higher than current market rates Many are in this group. Even with today’s rates, refinancing can lower your payment depending on your situation.

• You need more room in your monthly budget Rising costs and unexpected expenses can stretch finances thin. A refinance may help create the breathing room you need.

• You’ll stay in your home long enough to benefit Refinancing includes closing costs. A mortgage loan officer can help you understand your break‑even point so you can make an informed decision.

Cons of refinancing a mortgage to pay off debt

Refinancing might not be ideal if:

• You plan to move in the near future

• You already have a low mortgage rate, and savings would not outweigh costs

• You do not have enough equity to consolidate your debt

• Your new monthly payment would not be reduced enough to justify the refinance

At Westerra Credit Union, clarity always comes first. Our mortgage loan officers help members understand when refinancing is a good move and when another option may serve them better.

Why members choose Westerra Credit Union for refinancing

Many members think refinancing is complicated. Our goal is to make the process simple and supportive from the first conversation through closing.

You can expect:

• Clarity: Straightforward eligibility, clear rates and simple next steps.

• Guidance: A local mortgage loan officer who walks through your options with you.

• Confidence: Education that helps you understand your numbers and choose what works for your financial life.

• Real value: Offers designed for members, not promotional gimmicks.

So, is refinancing a smart way to pay off debt?

For many members it can be. Refinancing can simplify your financial life, reduce monthly payments and help you manage high‑interest debt more effectively. The key is making sure the numbers work for your situation. A mortgage loan officer at Westerra Credit Union can walk through your options and help you understand your potential savings.

Talk with a mortgage loan officer

You do not need to make this decision alone. You can explore your numbers and learn whether refinancing is right for you.

Start at https://www.WesterraCU.com/borrowing/mortgage/refinance to apply or connect with a mortgage loan officer.

You’ve got this. At Westerra Credit Union, we’re here to help you do money.

Loan terms and conditions depend on credit qualifications and approval.