Jessica Eddy, a mortgage broker at Edge Home Finance in Cincinnati, described the dynamic in a recent conversation with Mortgage Professional America.
“A lot of people are sitting on so much equity, but they’re drowning in credit card debt paying around 22% interest every month,” Eddy said.
“So we’re coming in with a more financial-advising approach.”
The math makes a compelling case. A homeowner carrying the average credit card balance of $6,519 at a rate of 19.57% who switches to a three-year personal loan at an average rate of 12.41% would pay roughly $1,300 in total interest — versus nearly $2,500 under the credit card scenario, with repayment running approximately six months longer.
Mortgage loyalty holds under pressure
Three-quarters of respondents describe their credit card debt as manageable, and 84% rank paying it off as a high priority. The findings are consistent with the broader pattern of rising household debt weighing on American borrowers that has defined the post-pandemic credit landscape, with mortgage performance remaining the durable anchor.
