Your home is more than just a place to live—it’s a powerful financial tool. Here’s how to put your equity to work.
As home values have continued to rise in many markets, homeowners in 2025 are sitting on a growing asset: home equity. Tapping into this value can open up opportunities to improve your home, reduce high-interest debt, invest in your future—or all three.
But unlocking equity should be done strategically. Here’s how to determine if it’s right for you, and which options make the most financial sense.
What Is Home Equity?
Home equity is the difference between your home’s current market value and the remaining balance on your mortgage. If your home is worth $500,000 and you owe $300,000, you have $200,000 in equity.
Option 1: Home Equity Line of Credit (HELOC)
- Works like a credit card with a revolving balance
- You only pay interest on the amount you use
- Ideal for ongoing expenses like home renovations or education
- Typically features a variable interest rate
Option 2: Cash-Out Refinance
- Replaces your existing mortgage with a new, larger one
- You receive the difference in cash
- May offer lower interest than personal loans or credit cards
- Good for consolidating high-interest debt or funding large, one-time purchases
Option 3: Home Equity Loan
- A lump-sum loan secured by your equity
- Fixed rate and fixed repayment term
- Useful for planned expenses with a known budget (e.g., a new roof, medical expenses)
Smart Uses of Home Equity:
- Remodel or upgrade your home (potentially increasing its value)
- Consolidate high-interest credit card debt into a lower-rate mortgage loan
- Fund college tuition or business investments
- Create an emergency fund or financial safety net
Pro Tip: Just because you can borrow against your home doesn’t mean you should. Equity is a valuable asset—treat it like one. Use it strategically for goals that improve your long-term financial position, not short-term wants.
Curious how much equity you have—and how you could use it wisely? Let’s run the numbers together. And if you know a friend who could benefit from a HELOC or cash-out refinance, we’re here for them too.
Contact our Sales team to explore your equity options today.
855-LOANWORKS (855.562.6769)
Sales@LoanWorks.ai
Disclosures: LoanWorks, Inc. is a mortgage broker licensed in multiple states. All information provided on this blog is for general informational purposes only and does not constitute an offer to lend or a commitment to approve any loan. Loan terms, rates, and eligibility are subject to change without notice and may vary based on creditworthiness, property type, and other factors. Not all applicants will qualify.LoanWorks, Inc. does not guarantee approval, rate, or term and does not make any express or implied claims about the availability of specific programs or products.
By refinancing an existing loan, total finance charges may be higher over the life of the loan. Always consult with a licensed LoanWorks representative for details specific to your financial situation.
LoanWorks, Inc. | NMLS #2506079 | Consumer Access
We are an Equal Housing Opportunity Broker.
For licensing and legal disclosures, visit our Licensing Page.