What Is the One Big Beautiful Bill?

In 2025, President Donald Trump signed a sweeping piece of legislation into law: the One Big Beautiful Bill Act. While it covers a wide range of economic and tax reforms, its impact reaches into the lives of homeowners across the country. At LBC Mortgage, we help homeowners take control of their housing costs by consolidating multiple payments into one mortgage. With the new law shifting tax deductions and budget priorities, now is the right time to consider refinancing and restructuring how you pay for your home.

The One Big Beautiful Bill Act, signed into law on July 4, 2025, brought major changes to both the tax code and federal spending. It made many of the 2017 tax cuts permanent, eliminated federal income taxes on overtime pay and tips, raised the cap on state and local tax deductions (SALT), and introduced new tax-advantaged savings accounts called Trump Accounts.

At the same time, the bill slashed funding for programs like Medicaid and SNAP, imposed work requirements for benefit eligibility, and made structural changes to government spending on low-income assistance. The intent was to reduce federal costs while encouraging work and private savings.

What the Legislation Means for Homeowners

The tax changes can affect how much homeowners benefit from refinancing, especially when consolidating other debts into their mortgage. For example, the raised SALT deduction cap—now up to $40,000 for most middle-income families—could make property tax payments more beneficial from a tax standpoint. Likewise, the exclusion of tips and overtime pay from taxable income might boost your take-home pay, making it easier to qualify for a mortgage refinance.

On the other hand, the cuts to Medicaid and SNAP may strain the budgets of families who rely on those programs. This makes it even more important to stabilize your housing costs with one reliable monthly mortgage payment.

The Case for Housing Cost Consolidation

Managing multiple payments each month—your primary mortgage, a second mortgage or HELOC, maybe even personal loans tied to home improvements—adds stress and confusion. By consolidating those debts into one single mortgage, you streamline your finances and potentially lower your total interest cost.

At LBC Mortgage, we specialize in helping California homeowners refinance into one structured, affordable payment. This can take the form of a rate-and-term refinance if you’re just simplifying existing loans, or a cash-out refinance if you’re using your home equity to pay off other high-interest debts.

How Consolidation Works

When you refinance your mortgage, you take out a new loan that pays off your existing mortgage—and optionally other debts tied to your home. This new mortgage will have one monthly payment, one interest rate, and a new loan term. In many cases, homeowners use a cash-out refinance to pull equity from their home and pay off credit cards, HELOCs, or even medical bills.

The result is a simpler financial picture. Instead of juggling different due dates and lenders, you have one predictable monthly payment. For many borrowers, this also means a lower monthly payment overall, especially if you lock in a better rate.

Benefits of a Single Mortgage Payment

Combining your housing-related debts into one loan often reduces your total monthly payments. A lower interest rate can result in significant savings over time. You also avoid the risk that comes with variable-rate loans, like HELOCs, which may spike unexpectedly.

Another major benefit is easier budgeting. One payment means fewer chances to miss due dates or rack up late fees. Over time, this can help improve your credit score, especially if you’re replacing revolving debt with an installment loan.

Simplifying your mortgage into one payment also provides long-term clarity. You’ll understand exactly how much equity you’re building and how quickly you’re paying off your home.

Why LBC Mortgage is the Right Partner

At LBC Mortgage, we focus on personalized solutions. We evaluate your mortgage, credit profile, and equity to find the most strategic path to consolidation. Because we’re brokers, we shop across multiple lenders to find the best rates and terms for your situation.

We also understand how to navigate California’s real estate market. Whether you’re in Los Angeles, San Diego, or Sacramento, we know local property values, tax rates, and what lenders expect. This local insight helps you avoid mistakes and maximize your savings.

We don’t just process paperwork. We explain every part of the refinance—what it will cost, what it will save, and how it will affect your tax picture now that the One Big Beautiful Bill is law. Our goal is to give you control over your housing costs with no surprises.

Our Refinancing Process

The first step is a full loan review. We look at your current mortgage balance, interest rate, monthly payments, and any other housing-related debt. We also review your home’s value, credit score, and income to determine what refinance programs you qualify for.

Then we show you your options. We estimate your new monthly payment, total interest savings, and any closing costs involved. You’ll see exactly how long it will take to break even on the refinance—and how the new payment structure compares to what you’re paying today.

Once you choose to move forward, we handle everything: application, rate lock, appraisal, underwriting, and closing. We keep you informed and answer every question along the way.

When Consolidation Makes the Most Sense

Refinancing to consolidate your housing costs is ideal when interest rates are lower than what you’re currently paying. It’s also smart if you have strong home equity or credit. Borrowers who’ve built equity and want to get rid of high-interest second loans or credit cards are excellent candidates.

If your financial situation is changing due to tax reforms or reduced public benefits, now is also a smart time to consolidate. Predictable housing costs give you flexibility, especially as federal policy evolves.

What to Watch Out For

As with any refinance, it’s important to watch for closing costs and prepayment penalties on your current loans. At LBC Mortgage, we help you understand the full cost so you can make a smart decision.

Extending your loan term to lower your monthly payment may increase total interest paid over time. That’s why we help you weigh short-term relief against long-term cost. Our goal is always to protect your financial future, not just reduce your monthly bills.

And while converting unsecured debt to mortgage debt can simplify payments, it also puts your home at risk if you fall behind. That’s why we ensure the new payment fits comfortably within your budget before we recommend moving forward.

The Bottom Line

The One Big Beautiful Bill changed the tax and economic landscape. For homeowners, it brings new opportunities—and new challenges. Whether the changes increase your take-home pay or reduce your access to public benefits, having a single, affordable mortgage payment can make all the difference.

At LBC Mortgage, we help you understand how refinancing fits into the broader financial picture. We don’t just offer loans—we offer guidance, local insight, and personalized support every step of the way.

If you’re ready to simplify your housing costs and take advantage of the changing tax environment, reach out today. We’ll help you evaluate your options and consolidate your housing-related debt into one clear, manageable mortgage.