2020… Rarely have 4 numbers carried so much emotion! Certainly it has been a year marked by significant events with real consequences for all of our lives. Perhaps you’ve experienced (check all that apply) a job change, a furlough, a job loss, a “new” home office, added a pet, a baby, college students back at home, a remodel, an addition, a new hobby, or a new car.

While we can’t help with everything, one thing that has helped many families is using their home equity to reset their financial picture. You know equity, right? The value of your home minus what you still owe creates this “bank” of equity sitting inside your home. That bank grows both as you pay down the amount of the loan and as the value of your home increases, something that many of us have been lucky to experience the last few years, with rising home values across the country.  Ultimately, this can leave you sitting with money in your home that could make a significant difference in your financial picture.

Not only is home equity your money to use, BUT it can often be accessed to you at a lower rate than some of the debt that you are currently dealing with. It’s called a cash-out refinance and here are some practical ways we’ve been seeing Christian radio listeners use their home equity.

  • Pay off credit cards – use that cashed out equity to pay off those credit cards with super bad interest rates. It can save you so much money in the long-term.
  • Vacation – While travel was nearly IMPOSSIBLE in 2020, we all know how important vacations can be to strengthening family, relationships and our psyche. We see a lot of listeners using a piece of their equity to plot our meaningful experiences.
  • Remodel or New Home Designs – did 2020 make you realize that you needed to remodel that old porch into an office? Or replace the furniture, or the carpet with some hardwood? It happened at our house! Some folks even bought swimming pools! Whatever the need or the want, use your home’s equity to pay for it, AND it could even increase your home’s value.

Hopefully you’ve got some good ideas on how to end the year stronger and smarter. If we can help, we’d love to be a help.