Leveraging Your Home Equity to Ease Money Worries and (Better Yet!) Build Wealth

The Lighter Side of Real Estate • January 11, 2024

When you’re worried about money, it can feel like you’re the only person in the world who’s struggling to figure out how to pay for things. So it may come as a relief to find out that you’re not alone if you’ve got money on your mind.

In fact, a recent survey of 2,000 people with less than 2 months worth of liquid assets revealed that 77% of them felt like they carried the mental and emotional weight of the finances in their household alone, and spent an average of 19 days worrying about money per year. About 25% of those surveyed said they devote a full week each month on budgeting, checking their bank account balance, and reviewing their credit card transactions.

It may not make it any easier when you’re dealing with the stress, but at least you know it isn’t a unique situation.

However, if you own a home, the past few years have probably put you in a position to worry a bit less, and maybe even put you in a better financial position in life moving forward.

How to Tap Into the Hidden Financial Potential in Your Home

Home values have risen substantially in many areas over the past few years. Even if you haven’t done any major improvements to your house, the chances are your equity has grown considerably, which means you have some potential money that could be put to good use.

Your equity is the difference between the amount your house is currently worth, and the amount you owe to any lenders.

For example, if you owed $240,000 (which is about the average mortgage balance per household according to Bankrate), and your house was worth $513,000 (which is the approximate average home price in the US according to Federal Reserve Economic Data), you’d have $273,000 worth of equity.

Unfortunately, that money isn’t real until and unless you monetize it. Other than selling your house, there are two basic ways to do that:

  • Do a cash-out refinance. This means you would take out a new loan on your house for more money than you currently owe, paying off the balance of the existing loan, and pocketing the difference between the new loan and existing loan you paid off.
  • Take out a home equity line of credit (HELOC). This is a revolving line of credit using the equity of your home as collateral.

In both approaches, lenders will typically allow you to borrow up to 80% of your equity. Using the above numbers as an example, if you refinanced your house with a $300,000 mortgage, you would free up about $60,000. Or you could take out an equity line of credit for $60,000 so you keep your existing mortgage rate if it’s one you want to keep.

That $60,000 is money you could use as breathing room to feel less stress over the what-if’s in life, like unexpected expenses, or, better yet, to improve your financial situation by using it strategically to make more money.

Just Make Sure to Use It Wisely…

No matter which way you tap into existing home equity, you’re going to have to pay that money back because they’re loans against the current value of your house. So, while just freeing up some cash to give you peace of mind and less stress is certainly helpful, using that money to make more money is the ideal way to put it to use.

This article from CBS News listed 5 smart ways to use your home equity in 2024, such as:

  • Use it to increase the value of your home even more. Doing some renovations or improvements that increase the value of your home can be a great use of equity. Just make sure to make strategic choices that will actually have a positive return on your investment by asking your preferred real estate agent for advice on the improvements that’ll give you the most bang for your buck.
  • Pay down higher interest debts. If you have credit card debts that are difficult to pay down, using your equity to get rid of those high interest payments can be a great way to clean the slate. Just make sure you don’t go right back to using those credit cards and accrue more debt again, and use the money you aren’t paying towards paying down those credit cards to start saving some money for emergencies, retirement, and a monthly safety net.
  • Invest in education. Whether it’s for you or your children, advancing earning potential by investing in education can be a useful way to use your equity. Just make sure the prospects for jobs in the field of study will be worth the cost of the education, and then some! (Also, weigh whether simply taking out student loans would be less risky, or more cost effective than using your equity.)
  • Buy more real estate. Using the equity in your current home to buy an investment property that provides you with positive cash flow is a great way to add to your wealth by having another property that you’re building even more equity with. Just make sure to work with your preferred real estate agent closely and buy a place that will produce enough income to cover the mortgage and expenses, and ideally some extra cash you can pocket per month.

While monetizing the equity you’ve gained can certainly make life easier, less stressful, and even financially better, just remember to be thoughtful about how much equity you take out — especially if you plan on selling in the next few years. Home values are still currently at all-time highs in many areas, and look to remain strong, but they can also drop depending upon how the market plays out. So leave yourself a good amount of equity in your home to stay safe.

Also, make sure you can afford to pay the money back on a monthly basis, and you aren’t just adding more debt that you’ll have to pay off and worry about. Ideally, use it for good reasons that make sense financially, and not to take a trip to a resort or or go on shopping sprees.

The Takeaway:

If you find yourself worrying about money being tight each month, you’re not alone. In fact, a recent survey revealed that 77% of people with less than 2 months worth of liquid assets felt like they carried the mental and emotional weight of the finances in their household alone, and spent an average of 19 days worrying about money per year.

But if you own a home, you may have equity you can tap into that will ease the monthly stress by freeing up some of the cash tied up in your home’s value by doing a cash-out refinance, or taking out a home equity line of credit. Better yet, if you invest it wisely you can use it to improve your finances! Just don’t tap into your equity for frivolous expenses, or take on more debt than you can comfortably handle.

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Buying a Home? Here's What You Should Know About Home Insurance Costs.

By KCM • August 24, 2026
Buying a Home? Here's What You Should Know About Home Insurance Costs. If buying a home is on your radar, you've probably been keeping an eye on mortgage rates and home prices . But don’t forget about homeowners insurance. Homeowners insurance has always been part of owning a home. But over the past few years, it's become a larger expense for many homeowners – something that's especially frustrating when affordability already feels tight. The good news? While premiums are still rising, the latest data shows those increases are beginning to slow. Here's what buyers should know. Home Insurance Costs Have Gone Up You've probably heard stories from friends or family about their premiums going up. And that’s not really a surprise when you consider data from the Pew Research Center shows 71% of homeowners say their insurance costs have gone up over the past few years. While no one likes rising costs, knowing what to expect can help you plan ahead. Your first insurance payment is typically included in your closing costs, but after that it'll become part of your monthly housing expenses. Getting an insurance quote early can help you build a more realistic budget and avoid surprises later. Premiums Are Rising, But Not as Fast as They Were Most of the headlines focus on how home insurance is getting more expensive. And that's true. But here’s the part that’s easy to miss. Insurance premiums are still rising. But they're not rising as fast as they were. According to the latest report from Rate Insurance, 2025 saw the first slowdown in annual premium increases since 2019 (see graph below): That doesn't mean premiums are getting cheaper. It simply means the rapid increases of the past several years may finally be starting to ease – a small but welcome step in the right direction. But what you’ll pay in one part of the country can look very different from what someone pays somewhere else. Where You Buy Can Make a Big Difference Insurance costs vary because some parts of the country experience more claims than others. That's why it's important to look at what's happening locally. Your premium will depend on things like where you're buying, the home itself, and the coverage you choose. Forbes data can give a rough idea of your state’s typical premiums. Check out the map below – the darker the blue, the higher the costs tend to be in that state: Ways To Lower Your Costs While you can't control every cost that comes with buying a home, you can control how prepared you are. If you’re crunching the numbers and trying to find ways to save, Insurify and NerdWallet offer these tips that can help you get the best insurance price possible: Shop Around – Compare quotes from multiple companies. Bundle Policies – Combine home and auto to see if a bundle price is cheaper. Ask If There Are Discounts – Don’t miss out on savings you may qualify for. Highlight Upgrades – Features like a new roof or storm windows can cut costs. Improve Your Credit – A stronger credit score can mean better premiums. One of the smartest things you can do is get an insurance quote before you make an offer. That way, you'll know what your monthly housing costs are likely to be before you commit. An insurance professional can walk you through your options and help you find coverage that fits both your needs and your budget. Bottom Line Homeowners insurance has become a bigger part of the homebuying conversation. But it doesn't have to become a bigger source of stress. The key is knowing what to expect before you buy. Get an insurance quote early, factor it into your budget, and lean on trusted local professionals to help you make the most informed decision possible.

Here’s Where To Start if You’re Selling and Buying at the Same Time

By KCM • August 20, 2026
Here’s Where To Start if You’re Selling and Buying at the Same Time If you're a homeowner getting ready to move , one question usually comes first: should you buy your next home before you sell, or sell your current house before you start looking? There's no single right answer. The best call depends on your finances, your local market, and your timeline. And a trusted agent can help you weigh all of it. But in a lot of cases these days, selling first puts you in the stronger spot. The Advantages of Selling First Selling is usually the trickier half of a move today, so getting it done first clears your biggest hurdle. And that’s especially true right now , because there are more homes for sale than there are buyers, which means houses are taking longer to sell than they did a year or two ago. So how does leading with your sale pay off? Let’s start with the money. 1. You Won’t Get Stuck Paying Two Mortgages Buy before you sell, and you could end up carrying two mortgages at once. And especially since houses are staying on the market longer these days, that overlap may drag on for more time than you’d planned. And if unexpected repairs come up, it could get even more expensive. Selling first takes that risk off the table, so you’re not multitasking homeownership. As Ramsey Solutions puts it: "It's best to sell your old home before buying a new one to avoid unnecessary risks and possible headaches." 2. You Can Use Your Equity To Fuel Your Move This is always true, but one of the biggest perks of selling first is that you’ll know exactly how much money you're walking away with. And one of the big figures that matters in that conversation is how much equity you have in your current place. Equity is basically your house’s value minus what you still owe on your mortgage. And it adds up fast. According to Realtor.com, homeowners who’ve been in their home for 5 years have about $180,000 in equity on average. And those who’ve had their home for 6-10 years? They have over $340,000. After you sell, you can use that money to cover your down payment or even buy your next home in cash. And knowing that profit up front helps you plan your next move. 3. Your Offer Will Be Hard To Pass Up When your house is already sold, you don’t have to make your offer contingent on that sale. In a market where buyers are taking their time, that’s exactly what a seller wants to see. Picture it from the seller’s side. If their house has been sitting for a while, they’ll gravitate toward the offer most likely to close without a snag. That can also give you room to ask for a little more, like repairs, since a motivated seller would rather keep things moving than lose you and wait for another offer to come in. Your agent can help you make the most of your upper hand in that scenario. Is There a Catch? Selling first has its tradeoffs too, and it helps to see the pros and cons side by side before you decide. Here’s a quick breakdown based on information from Zillow (see visual below): The cons are manageable with the right plan, so talk about them with your agent. They can help you negotiate things like a rent-back, where you stay in your house for a set time after closing, or line up flexible closing dates to keep the transition smooth. Bottom Line There's no one-size-fits-all answer to buying and selling at once. But for a lot of homeowners, leading with the sale makes moving easier on their mind and their wallet. Let’s connect, so you can navigate selling and buying with more confidence, more financial power, and less stress.m a different source.

The House That Started It All Could Kickstart What's Next

By KCM • August 17, 2026
The House That Started It All Could Kickstart What's Next Remember how exciting it was to buy your first place? It felt like crossing a long-awaited finish line. It gave you a place to build your life. Maybe it’s where you lived when you got married. Or where you welcomed a child or a pet into the family. But that was just the beginning. For most people, your first house was never meant to be your forever home. It’s a stepping stone for what comes next. And if your life looks different today than it did when you got the keys, you’re not stuck. Moving may be more realistic than you think. Starter Home Inventory Is Still Relatively Low If you've been wondering whether now is the right time to move up, here's something worth knowing. Starter homes remain one of the hardest types of homes to find. And that's good news if you're thinking about selling your first place. Historically, we haven’t been building enough homes for first-time buyers. And even though homebuilders have shifted more attention toward smaller, entry-level homes lately, the Census shows there’s a long way to go to re-build supply (see graph below): That means your current house is in demand – and that’s a dream scenario for sellers. But that’s only half the story. You also need somewhere to go. There Are More Move-Up Homes on the Market Here’s where this gets interesting. While the supply of starter homes remains tight (the green line), data from Redfin shows that the number of homes for sale has been climbing overall (the blue line): As Nadia Evangelou, Principal Economist and Director of Real Estate Research at the National Association of Realtors (NAR), explains : “Too much of the inventory available today remains concentrated at higher price points, leaving a shortage of options for entry-level and middle-income buyers.” That means you may have more choices for your move up than you'd expect. Whether you're hoping for another bedroom, a home office, a bigger backyard, or simply more room for this next stage of life, today's market may finally be giving you the chance to find it. At the same time, your current house may be exactly what someone else has been looking for because homes like yours are still in short supply. That's a unique advantage for move-up buyers. And it could help you sell for a stronger price. As Zillow says: "Starter home value appreciation has outpaced other types of homes nationally, mostly because they're so in demand." Your Biggest Advantage May Be Your Equity Here’s the cherry on top. There's one more thing your first home has been doing behind the scenes, and that’s building equity . Every mortgage payment you've made and every year your home's value has grown has quietly increased your ownership stake in your house. According to Cotality , the average homeowner with a mortgage has $295k in equity built up. While your number may be different, once you sell, it could become the down payment on your next home or help reduce the amount you need to borrow at today’s rates. Put it all together and your move up becomes a lot more realistic than you think: The house you're selling is in demand. The house you're buying may be easier to find. And the equity you've built can help bridge the gap between the two. Your first home did exactly what it was supposed to do. It gave you a place to start. Now, it may be the thing that helps you take the next step. Bottom Line Your first home was never meant to be your forever home. It was meant to help you build a life and build the financial foundation for whatever came next. If your current home no longer fits the life you're living today, let’s connect. You may be closer to your next chapter than you realize.
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