4 Ways to Tap Your Equity and Make a Smart Financial Move
Written by Molly Plester
Expert Verified
Updated March 4, 2025
With home values on the rise, many homeowners are sitting on a huge pile of home equity. You may be shocked to learn how much equity you have and what you can do with it.
And your home doesn’t have to be paid off to access your equity. If you’re currently paying off your mortgage, you can still use your equity to tackle some of your other big-picture goals.
When homeowners visit LendingTree.com, they are matched with up to five highly rated lenders for home equity loans, HELOCs and cash-out refinancing. By filling out one simple form in about two minutes, you can find your best rates and options for average loan amounts over $80,000!
Ready to get personalized rates? Compare offers today.
Smart homeowners tap their equity to improve their finances, net worth and quality of life.
Home improvements
By putting equity back into your home, your house could potentially increase in value. Get cash for repairs, renovations and upgrades, and make your home more comfortable and valuable. Plus, using your equity for home improvements could possibly be tax deductible. It’s a win-win-win!
Debt consolidation
If you’re struggling with credit card balances, medical bills and other expensive debt, your home equity could give you a fresh start. Use your equity to pay off high-interest debt and enjoy one simple monthly payment.
Major expenses
You may want to use your equity instead of a credit card or personal loan for big life moments, such as a wedding, vacation or college. With typically lower rates and more flexible terms, home equity could be your best option.
BONUS TIP! Use a HELOC as your rainy-day fund
A HELOC (or Home Equity Line of Credit) can help you stay prepared for almost anything. Here are some of the reasons to love a HELOC:
Ongoing access to a large amount of cash that you can use and reuse
Typically lower rates than personal loans and credit cards
Only pay interest on what you use
No impact to your credit utilization (which could affect your credit score)
Use for whatever you need, like home repairs or credit card debt
Your HELOC can help you pay for surprises or emergencies. Enjoy peace of mind knowing you have a large amount of cash available when you need it – at a lower rate than most credit cards.
The bottom line
Unlocking home equity can be a smart choice for funding home improvements, consolidating debt and more. With lower rates than other loan options and potential savings at tax time (consult your tax advisor), using your home equity is a no brainer.
LendingTree helped over 1.5 million homeowners explore their home equity options in 2024. With hundreds of top-rated lenders and decades of experience, they can help you too.
Why wait? Check your personalized rates and find out if you qualify in as little as two minutes. There’s no hard credit check and no obligation to apply.
Get started and get one step closer to your goals right now!
