Before you start
US consumer consolidation involving home equity. Mortgage type, lien priority, disclosures and state rights vary; this page does not calculate foreclosure deadlines or determine a right to cancel.
1. Identify the new claim against the property
Ask whether the proposal is a home-equity loan, a line of credit or a refinance that replaces an existing mortgage. These are different arrangements. Identify whether the existing mortgage remains and which property secures the new borrowing. CFPB warns that failure to repay home-equity debt can lead to foreclosure. Moving card balances into this loan does not erase the debt; it changes the lender’s security.
2. Trace the borrowed money and closing costs
Request a list of debts to be paid, current payoff quotes and the amount available after costs. Distinguish fees paid from cash, withheld from proceeds and financed into the new balance. Ask about appraisal, title, recording and other quoted charges without assuming every fee applies. Confirm who sends payoff funds and how old-creditor receipts will be checked. Funding a new loan does not itself prove the old accounts were paid.
3. Read terms that can change the payment
Record rate type, payment schedule, term and any balloon amount. For a line of credit, ask about draw and repayment periods and how a variable rate affects the required payment. Request documented payment scenarios rather than assuming the first payment lasts throughout. Include existing housing costs, insurance, taxes and essential repairs in the household budget. The equity used for consolidation may be unavailable for other needs.
4. Compare the same debt without new home security
Ask what current-creditor hardship arrangements or credit counseling could involve, and compare any unsecured written offer on the same debt and horizon. No alternative is automatically available or appropriate. A lower rate or smaller payment alone does not measure the consequence of putting the home at risk. Ask a qualified professional to explain unclear lien or cancellation terms. Keep a written question list and avoid signing documents you do not understand.
Fictional example: check the documents
A fictional offer borrows $24,000 against a home and withholds $1,200 disclosed costs, leaving $22,800 for creditor payoffs. Dated payoff quotes total $23,100, so the proceeds are $300 short: $24,000 − $1,200 − $23,100 = −$300.
The household asks for a corrected funding plan and confirms whether $1,200 is already inside the loan balance. It does not add that financed cost again or assume all debts will close. Even if the gap is resolved, the new lien and future payment terms still require review.
Before you finish
- Loan type and home-security documents
- Existing mortgage and new-lien explanation
- Payoff quotes and net available proceeds
- Itemized costs and their payment treatment
- Rate changes, full schedule and alternative offers
My preparation notes
All notes are optional. Use labels such as Debt A and Document B. Keep identifying records, account numbers and tax IDs outside this page.
Entries are optional and stay in this page's memory. This worksheet does not send or save them. Use generic account labels and document labels. Do not enter account numbers, Social Security numbers, PINs, access codes, passwords, names or addresses, and do not upload documents. Downloading or printing creates a copy you control.
Review the funding gap and home-security terms alongside cost before accepting the offer.
Put up to four documents or actions in order
Record a short fact, such as requested a quote, sent a question, or received written terms. Dates and document labels are optional. Use generic labels; keep actual documents and identifying details outside this tool.
This is a factual log. Dated events sort from oldest to newest. Events on the same date keep their entry order because times are unknown. Undated events appear separately, in entry order. A document reference is your own label, not proof that a record was verified.
Enter actual dates as YYYY-MM-DD. If a date is unknown, leave it blank; do not invent one. Dates are calendar dates, with no time zone or time-of-day comparison. This record does not calculate a legal deadline or schedule reminders.
Questions you may have
Does a lower rate make the collateral risk disappear?
No. Price and security are different contract features. Check total cost and affordability while separately considering what the lender can do after default.
Can this page tell me when I may cancel?
No. Any cancellation right depends on the transaction and applicable rules. Ask promptly about the actual disclosures and get legal help if timing is uncertain.