Over the past 10 years, home prices have risen to historic levels. It’s great news for homeowners like you—it means your home equity has probably increased since you purchased your home. Tapping into this equity can be a powerful way to achieve your financial goals.
What is home equity?
Home equity is the difference between how much your home is currently worth and the remaining principal balance on your mortgage. As your home value increases, so does your home equity.
How can I tap into my home equity?
You can tap into your home equity through a home equity line of credit (HELOC), home equity loan (HELOAN), or a cash-out refinance. Visit this article to learn more about home equity options.
What can I do with the cash I take out?
How you choose to spend the cash you take out of your home is completely up to you! Leveraging your home equity is a great way to pursue your financial goals, whatever they might be.
Here are a few common reasons homeowners choose to take cash out:
- Home Improvements: You can improve the quality of your home, increasing its value—and further increasing your equity.
- Pay off high-interest debt: Certain debts, especially credit card debt, often have much higher interest rates than mortgage loans. Using equity from your home to pay off these debts could be a savvy financial decision.
- Investment: The cash you take out could help you pay for a second home, an investment property, or other investments.
How much cash can I take out?
We encourage you to reach out to one of our loan officers to determine how much cash you can take out of your home equity, and to learn more about qualifications and interest rates.
As a digital-first lender, we make the process quick and simple for you—especially if we already service your mortgage. You can apply online now, or connect with us by emailing loans@valon.com or calling our toll-free number: 888-608-5534 (Monday–Friday, 11AM–9PM ET).