How Smart Homeowners Are Using Equity to Eliminate Debt and Unlock Monthly Cash Flow
Total tappable home equity in the U.S. reached a staggering $20.9 trillion at the end of 2024—a historic high that’s reshaping how Americans think about their financial future. For homeowners juggling high-interest credit cards, personal loans, or major expenses, this is more than a number—it’s a lifeline.
In a time when monthly budgets are stretched and interest rates are unpredictable, accessing your home equity—without refinancing your low-rate mortgage—could be the smartest move you make this year.
Why It Matters: Monthly Freedom Starts with Smarter Cash Flow
Let’s be real—non-mortgage debt is weighing people down. U.S. homeowners carried $818 billion in non-mortgage debt at the close of 2024, up 5% year-over-year. The average homeowner owes $8,600, and 23 million of them carry $10K or more.
That’s not just a balance—it’s a monthly stressor. Credit card APRs often hover around 20%, and personal loans aren’t far behind. Redirecting those payments into a single, lower-rate home equity solution can free up hundreds (or more) per month, offering immediate breathing room and long-term savings.
3 Ways to Put Your Home’s Equity to Work
- HELOAN: Predictable, Powerful, and Fixed
A Home Equity Loan (HELOAN) is ideal for those who want the security of a fixed interest rate and a structured repayment plan.
- Receive up to $500,000 in a lump sum
- Fixed monthly payments—no surprises
- Keep your current mortgage rate
- Ideal for debt consolidation, home improvements, tuition, or business investments
With origination volumes up 8% year-over-year, HELOANs are more popular than ever—because they let you eliminate debt with stability and certainty.
- HELOC: Flexible Access When You Need It
A Home Equity Line of Credit (HELOC) gives you access to funds on demand—ideal for variable or ongoing expenses.
- Borrow only what you need
- Pay interest-only during the draw period
- Get approved for up to $500,000 in as little as two weeks
- Keep your current mortgage untouched
HELOCs are on the rise too—up 6% year-over-year—and are a solid choice for homeowners looking for flexibility without disrupting their mortgage.
- Cash-Out Refinance: Restructure and Save
If you already have a higher-rate mortgage, or you prefer to simplify into one payment, a cash-out refinance might be your best tool.
- Replace your current mortgage with a larger one, taking the difference in cash
- Use those funds to pay off high-interest debt
- Potentially lower your total interest paid over time
- Eliminate PMI if your loan-to-value drops below 80%
- Set your mortgage term to fit your long-term goals
Real-World Impact: See the Monthly Savings
We’re not just talking theory—this is what it can actually look like in your monthly budget:
🔹 $2,285/month – Non-mortgage debt payments
🔹 $4,409/month – Combined current mortgage and debt
🔹 $3,194/month – New mortgage after cash-out refinance & debt consolidation
🔹 $1,215/month SAVINGS – That’s real monthly breathing room
This is the power of refinancing with purpose. By rolling high-interest debt into a new mortgage, homeowners can simplify their payments and free up over $1,200 per month—money that can now go toward savings, investments, or simply living life.
Choosing the Right Equity Strategy
The Bottom Line
If you’re one of the 23 million homeowners with $10K+ in non-mortgage debt, now is the time to evaluate your options. Whether it’s a HELOAN, HELOC, or cash-out refinance, each offers a way to put your home’s value to work—not just sitting in your walls, but actively improving your monthly cash flow and long-term financial stability.
Take the First Step Toward Financial Clarity
Get your complimentary Home Equity & Debt Analysis. We’ll show you how much equity you can access, which strategy best fits your needs, and how to reduce your monthly expenses while staying financially confident.
