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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Why So Many Homeowners Are Downsizing Right Now

By KCM • February 19, 2026
Why So Many Homeowners Are Downsizing Right Now For a growing number of homeowners, retirement isn’t some distant idea anymore. It’s starting to feel very real. According to Realtor.com and the Census, nearly 12,000 people will turn 65 every day for the next two years . And the latest data shows as many as 15% of those older Americans are planning to retire in 2026. And another 23% will do the same in 2027. If you’re considering retiring soon too, here’s what you should be thinking about. Why Downsize? Now's the perfect time to reflect on what you want your life to look like in retirement. Because even though your finances will be going through a big change, you don’t necessarily want to feel like you’re living with less . But odds are, what you do want is for life to feel easier . Easier to enjoy. Easier to manage. Easier to maintain day-to-day. The Top Reasons People Over 60 Move You can see these benefits show up in the data when you look at why people over 60 are moving. The National Association of Realtors (NAR) finds the top 4 reasons aren’t about timing the market or chasing top dollar. They’re about lifestyle: Being closer to children, grandchildren, or long-time friends so it’s easier to spend more time with the people who matter most Wanting a smaller, more functional home with fewer stairs and easier upkeep Retiring and no longer needing to live near the office, so it’s easier to move wherever you want Opting for something smaller to reduce monthly expenses tied to utilities, insurance, and maintenance No matter the reason, the theme is the same: downsizing isn’t about giving something up. It’s about gaining control and choosing simplicity. And it brings peace of mind to know your home fits the years ahead, not the years behind. And the best part? It’s more financially feasible now than many homeowners would expect. The #1 Thing Helping So Many Homeowners Downsize Here’s the part that makes it possible. Thanks to how much home values have grown over the years, many longtime homeowners are realizing they’re in a stronger position than they thought to make that move. According to Cotality , the average homeowner today has about $299,000 in home equity . And for older Americans, that number is often even higher – simply because they’ve lived in their homes longer. When you stay in one place for years (or even decades), two things happen at the same time: Your home value has time to grow. Your mortgage balance shrinks or disappears altogether. That combination creates more options than you’d expect, even in today’s market. So, whether you just retired, or you're about to, it's not too soon to start thinking about what comes next. Sure, it can be hard to leave the house you made so many years of memories in, but maybe it’s time to close one chapter to open a new one that’s just as exciting. Bottom Line Downsizing is about setting yourself up for what comes next – on your terms. If retirement is on the horizon and you’ve started wondering what your current house (and your equity) could make possible, the first step isn’t selling. It’s understanding your options. Let’s talk. A simple, no-pressure conversation can help you see what downsizing might look like – and whether it makes sense for you.

You May Not Want To Skip Over That House That’s Been Sitting on the Market

By KCM • February 18, 2026
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A 50-Year Mortgage Might Arrive Soon—Here’s How to Decide if It’s Right for You

By The Lighter Side of Real Estate • February 15, 2026
You’ve probably seen the buzz lately about 50-year mortgages possibly hitting the U.S. market soon. If you haven’t come across it yet, you probably will—whether in a headline, a newsfeed scroll, or it’ll just be an option the next time you’re house hunting. At face value, it sounds like a pretty sweet deal for anyone feeling squeezed by prices and rates. Stretch the payments out over half a century, and suddenly that monthly bill looks a whole lot friendlier. What’s not to love, right? Well, that depends on your perspective. So before deciding whether this could be a game-changer or just another gimmick, let’s make sure you’ve got enough info to have an informed opinion… Lower Payments? Yes. Lower Costs? Not Exactly. For many, the appeal comes down to affordability. A longer loan term could help buyers qualify for homes that might otherwise be out of reach, or simply make monthly payments more comfortable. That part is true, but where there’s a “gimme” there’s a “gotcha.” While the monthly payment may drop, the total cost over time can skyrocket. Stretching a loan over half a century means paying additional interest for half a century. The “savings” you feel each month could easily be swallowed up—and then some—by what you’ll ultimately pay in interest. Just Another “New” Option A 50-year mortgage might sound new and exciting, but it’s really just another option that isn’t currently offered. (Well, at least not all that often.) Buyers already have plenty of choices when it comes to loan terms: 10-, 15-, 20-, and 30-year mortgages are all standard options. Add in the mix of fixed-rate and adjustable-rate structures, and you’ve got a wide range of combinations designed to fit different financial situations. But more often than not, people lean toward the 30-year fixed rate loans. Technically, 40- and even 50-year mortgages already exist, though they’re rare in the U.S. and typically not backed by government programs. According to The White Coat Investor , they’re far more common in Europe, where ultra-long-term loans have been part of the financial landscape for years. A Matter of Perspective Whether a 50-year loan sounds appealing often comes down to your personal philosophy, and your tolerance for long-term debt. Some buyers lean toward shorter-term loans—like 15 or 20-year mortgages—because they want to own their home free and clear sooner and pay less in interest. Someone taking this approach, especially with a 15-year fixed or adjustable-rate mortgage, is often very disciplined about paying extra each month to chip away at the principal. To them, the vast majority of people opting for a 30-year fixed loan might look like they’re squandering money by stretching payments out unnecessarily and paying far more interest than they need to. On the flip side, 30-year borrowers often see the world differently. They value lower monthly payments and the flexibility it provides—whether to invest elsewhere, cover lifestyle costs, or just have breathing room in the budget. To them, those who aggressively tackle a 15-year loan might seem either a little extreme… or just downright wealthy to be able to afford such high payments. So, just like 15-year buyers might shake their heads at 30-year loans, 30-year borrowers will likely question a 50-year term. The point is, there’s no “right” choice. It’s about what makes you comfortable financially and psychologically. Is It Worth the Monthly Savings? Whether the monthly savings makes sense really depends on your perspective and personal situation. Everyone’s circumstances are different, so this is a question only you can answer for yourself. When you’re considering what type of loan and terms to choose, you’ll need to crunch the numbers at that moment—current rates, your credit score, and other factors will all play a role. But to give you some general perspective, HousingWire did some math you might find useful. According to the article, stretching a loan out to 50 years might shave around $100–$200 off your monthly payment compared to a 30-year mortgage. That’s not nothing—it could make a tight budget feel a little more comfortable. However, because you’re paying interest for an extra 20 years (or more), the total cost over the life of the loan can balloon dramatically. In the examples they gave, the interest payments were more than double what they would have been with a 30-year loan. And we’re talking hundreds of thousands of dollars. That “nice little savings” each month comes at the expense of paying far more in the long run. So yes, you’ll feel relief each month with a lower payment, but over decades, your home ends up costing a lot more than the purchase price. That’s the trade-off. A 50-year mortgage isn’t inherently bad; it’s just a choice between short-term comfort and long-term savings. And it’s a choice worth thinking through carefully before signing anything. The Takeaway: The idea of a 50-year mortgage might sound like a silver bullet for housing affordability, but the reality is more nuanced. Sure, it could make monthly payments a bit lighter—but it could also cost much more in the long run and potentially nudge home prices even higher. As with most things in real estate, there’s no one-size-fits-all answer. It’s not necessarily right or wrong, it’s about what’s right for you. The key is to understand exactly what you’re signing up for before committing to a loan that could last longer than most careers.
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