Are you looking for a way to access the equity in your home to fund important projects or expenses? A cash-out refinance might be the perfect solution for you. This financial strategy allows homeowners to tap into their home’s equity, providing the flexibility to use the funds for what matters most—whether it’s home improvements, education, or even expenses that may be tax-deductible.
What is a Cash-Out Refinance?
A cash-out refinance involves replacing your existing mortgage with a new one that has a higher loan amount. The difference between the new mortgage and the amount you owe on your current mortgage is given to you in cash. This means you can access a portion of your home’s equity while potentially securing a lower interest rate on your mortgage.
Why Consider a Cash-Out Refinance?
- Flexibility in Fund Usage: Unlike some loans that come with strict rules on how the funds can be used, a cash-out refinance gives you the freedom to spend the money on your terms. Whether you want to renovate your kitchen, pay for your child’s education, or consolidate high-interest debt, the choice is yours.
- Potentially Lower Interest Rates: With interest rates fluctuating, many homeowners find that refinancing can lead to a lower rate on their mortgage. This can result in lower monthly payments, making it easier to manage your finances while accessing the cash you need.
- Access to Significant Equity: In the second quarter of 2025, cash-out refinances accounted for 59% of all refinance transactions, with homeowners accessing an average of USD 94,000 in equity. This substantial amount can make a significant difference in funding your goals.
How Does It Work?
- Determine Your Home’s Equity: To start, you’ll need to know how much equity you have in your home. This is calculated by subtracting your current mortgage balance from your home’s market value.
- Apply for a Cash-Out Refinance: Once you’ve determined your equity, you can apply for a cash-out refinance. Your lender will assess your financial situation, including your credit score, income, and debt-to-income ratio.
- Receive Your Cash: After approval, you’ll receive the cash difference between your new mortgage and your existing mortgage balance. You can then use these funds as you see fit.
Is a Cash-Out Refinance Right for You?
While a cash-out refinance can be a great way to access funds, it’s essential to consider your financial situation and long-term goals. Here are a few questions to ask yourself:
- Do you have a specific project or expense in mind that requires funding?
- Are you comfortable with the idea of increasing your mortgage balance?
- Will the potential savings from a lower interest rate outweigh any costs associated with refinancing?
Conclusion
A cash-out refinance can be a powerful tool for homeowners looking to unlock their home’s value. Whether you want to make improvements, invest in education, or consolidate debt, this option provides the flexibility and potential savings you need.
If you’re interested in exploring how a cash-out refinance could help you reach your goals,
find a loan pro today or apply now to get started.
Don’t just refi, SmartRefi with SNMC and let us help you save thousands!
Understanding Fannie Mae’s New Update on Accessory Dwelling Units (ADUs)
Fannie Mae has recently made an important update that could benefit many borrowers looking to enhance their qualifying income. Effective immediately, rental income generated from Accessory Dwelling Units (ADUs) can now be included in a borrower’s qualifying income for purchase money mortgages and limited cash-out refinances.
What is an ADU?
An Accessory Dwelling Unit (ADU) is a secondary housing unit located on the same property as a primary residence. These units are designed to provide independent living spaces, complete with sleeping, cooking, and bathroom facilities. ADUs can be interior, attached, detached, or even manufactured homes, but they cannot serve as the primary residence if the main home is a manufactured home.
Key Updates to Note:
Income Inclusion: Borrowers can now count rental income from one ADU toward their qualifying income.
Limitations: The rental income from the ADU is capped at 30% of the borrower’s total qualifying income.
Eligibility: This update applies only to one-unit principal residences. Properties with multiple ADUs or those with two to four units are not eligible.
Underwriting: Manual underwriting can implement this new rule immediately, while standard rental documentation requirements will still apply.
This change opens up new opportunities for homeowners with ADUs to leverage their rental income, making it easier to qualify for loans. If you have an ADU or are considering adding one, this update could be a significant advantage in your borrowing journey.
Ready to explore how the new ADU income rules can benefit you? We’re here to help you navigate your borrowing options and make the most of your investment.
Life is full of surprises—some delightful, like a new puppy, and some, well, let’s just say less than ideal. Whether it’s a toddler’s latest “experiment” with the toilet, a dog that thinks the freshly cleaned glass door is an invisible barrier, or discovering that the previous owner treated the drains like a bacon grease disposal, unexpected repairs can hit your wallet hard. But fear not! Your home equity is here to save the day.
What is Home Equity?
Home equity is the difference between your home’s current market value and the amount you owe on your mortgage. For example, if your home is worth USD 300,000 and you owe USD 200,000, your equity is USD 100,000. This equity can be a powerful financial tool, especially when life throws you a curveball.
Why Tap into Your Home Equity?
1. Cover Unexpected Repairs:
Life happens, and sometimes it happens in the form of a leaky roof or a broken furnace. These repairs can be costly, but with a Home Equity Line of Credit (HELOC) or a home equity loan, you can access the funds you need without draining your savings.
2. Fund Home Improvements:
Maybe you’ve been dreaming of a kitchen that doesn’t resemble a 1970s time capsule or a bathroom that feels more like a spa than a science experiment. Using your home equity can help you finance these improvements, increasing both your home’s value and your enjoyment of the space.
3. Consolidate Debt:
If you have high-interest debt, such as credit card balances, using your home equity to consolidate that debt can save you money in the long run. By paying off high-interest loans with a lower-interest home equity loan, you can reduce your monthly payments and free up cash for other expenses.
4. Invest in Your Future:
Whether it’s funding your child’s education or investing in a rental property, your home equity can provide the financial flexibility you need to make those important life decisions.
How to Access Your Home Equity
There are two primary ways to access your home equity:
– Home Equity Line of Credit (HELOC): This is a revolving line of credit that allows you to borrow against your home’s equity as needed. It’s similar to a credit card, where you can withdraw funds, pay them back, and borrow again. HELOCs typically have variable interest rates, so it’s essential to consider how that might affect your payments over time.
– Home Equity Loan: This is a lump-sum loan that you repay over a fixed term, usually at a fixed interest rate. It’s ideal for larger projects where you know the total cost upfront, such as a major renovation.
The Benefits of Using Home Equity
– Lower Interest Rates: Home equity loans and HELOCs often have lower interest rates compared to personal loans or credit cards, making them a cost-effective option for financing repairs or improvements.
– Tax Benefits: In some cases, the interest paid on home equity loans may be tax-deductible, especially if the funds are used for home improvements. Always consult with a tax professional to understand your specific situation.
– Increased Home Value: Investing in your home can lead to increased property value, which can be beneficial if you decide to sell in the future.
When to Consider Tapping into Your Home Equity
While home equity can be a valuable resource, it’s essential to use it wisely. Consider tapping into your equity when:
– You have a specific project in mind that will increase your home’s value.
– You’re facing unexpected repairs that need immediate attention.
– You want to consolidate high-interest debt to save money.
Conclusion
So, the next time life throws a curveball, remember: your home equity can help you hit it out of the park! It’s a powerful financial tool that can provide the funds you need for repairs, renovations, and more.
If you’re ready to explore your options,
find your loan pro today to discuss how you can tap into your home’s value.
Don’t just refi, SmartRefi with SNMC and let me help you save thousands.
We believe every milestone matters, especially when it’s 60 years of service and growth. That’s why our parent company, SecurityNational Financial Corporation Nasdaq:SNFCA, rang in the opening bell at Nasdaq on September 24, 2025, as part of our 60th anniversary celebration.
This moment was more than a symbolic gesture. It reflects our past, present, and future, and underscores what it means for you, our clients and partners, in the mortgage world.
A Legacy Built on Trust and Diversification
Since our roots began in 1965 with SecurityNational Life Insurance, we’ve evolved and expanded into multiple segments—life insurance, funeral services, and mortgage origination. While some companies focus on a single line of business, we see strength in diversity—and that strength carries over into how we approach mortgage lending.
By being part of a broader, stable institution, SecurityNational Mortgage leverages shared values and long-term vision. It’s not just about closing deals; it’s about building communities, enabling homeowners, and doing so in a way that sustains through market cycles.
What Ringing the Bell Means for Our Mortgage Business
- Public visibility and accountability
Being listed and participating in Nasdaq’s bell-ringing tradition puts us in the public eye. That means greater transparency, more corporate governance rigor, and a platform to share our story—especially in lending. It reinforces that our mortgage division operates under the same high standards and scrutiny as our sister segments.
The bell ringing isn’t just a celebration—it’s a signal. We’re poised for continued expansion in mortgage originations, bringing innovation, improved services, and deeper market penetration. As we mark 60 years, our mortgage division will continue evolving to serve more borrowers across more geographies.
- Confidence for our clients and partners
When clients choose SecurityNational Mortgage, they’re backed by a company that’s stable, visible, and committed. That adds a layer of confidence: you’re not just dealing with a mortgage office—you’re working with a credible institution with decades of track record.
What This Means for You — Homebuyers, Realtors, and Partners
- More access, more consistency
From first-time homebuyers to experienced investors, our mission remains the same: to deliver competitive mortgage solutions, transparent processes, and dependable service regardless of market conditions.
- Stronger partnership for realtors
Realtors and referral partners benefit from aligning with a brand that holds public accountability and long-term presence. We’re investing in people, systems, and outreach—so you can confidently refer clients and know they’re getting top-tier support.
- Innovation and flexibility
As part of a larger financial enterprise, we can invest in mortgage technology, underwriting tools, and customer experience enhancements. You’ll see us roll out better online tools, faster underwriting, and smarter communications in the months ahead.
Looking Forward
Ringing the Nasdaq Opening Bell is both a celebration and a promise: 60 years behind us, and many decades ahead. For SecurityNational Mortgage, this isn’t just about optics—it’s about recommitting to the mission of homeownership.
If you’re thinking about buying, building, refinancing, or referring clients, now is a great time to reach out. Let’s harness the strength of our legacy and bring your home goals into sharper focus.
Here’s to the next chapter—together.
– The Team at SecurityNational Mortgage / SecurityNational Financial Corporation
If you own a home, you’ve probably heard of a HELOC, or Home Equity Line of Credit. But do you know what it can really do for you? A HELOC is often called the “credit card you didn’t know you have,” except instead of plastic, it taps into the equity in your home—and at rates that are usually much lower than traditional credit cards.
In this blog, we’ll break down how HELOCs work, why they’re a smart financial tool, and how you can use them strategically for your life goals.
How a HELOC Works
A HELOC functions much like a revolving line of credit. Here’s the breakdown:
- Borrow what you need: You’re approved for a maximum credit limit based on your home’s value and your loan-to-value ratio.
- Repay and reuse: As you pay down the balance, the available credit replenishes, allowing you to borrow again without reapplying.
- Lower rates than credit cards: While credit cards can carry interest rates of 20% or more, HELOCs typically offer much lower rates, often under 8% in today’s market.
This flexibility makes HELOCs ideal for large expenses, debt consolidation, or unexpected costs—without the burden of high-interest credit cards.
Why Now Might Be the Right Time
According to the June 2025 ICE Mortgage Monitor, U.S. homeowners hold a staggering $11.5 trillion in tappable equity—the portion of home value that can be borrowed while maintaining at least 20% equity. With rising home values over the last five years and historically low rates on HELOCs, many homeowners are discovering that now is an ideal time to leverage their equity.
Accessing this equity can help you:
- Renovate your home and increase its value
- Pay for educational expenses
- Consolidate high-interest debt
- Cover unexpected emergency costs
Real-Life Scenarios
Here are a few examples of how homeowners are using HELOCs to make life easier:
- Home Improvements:
- Jane and Mark wanted to remodel their kitchen and add a deck. Instead of using a high-interest personal loan, they used a HELOC to cover the $40,000 renovation, paying much less in interest and maintaining flexibility for other expenses.
- Debt Consolidation:
- A HELOC can replace multiple credit cards with a single, lower-interest line of credit. For instance, Sam consolidated $25,000 of credit card debt into a HELOC at 7% instead of paying 22% across multiple cards—saving thousands in interest over time.
- Education Expenses:
- Parents often use HELOCs to pay for college tuition or other educational needs. Because you can draw funds as needed during the draw period, it works similarly to a flexible student loan, often at lower rates.
- Unexpected Expenses:
- From emergency car repairs to home water damage, a HELOC provides fast access to funds. Unlike traditional loans, you don’t have to reapply each time, giving you peace of mind.
HELOC vs. Traditional Loans
|
Feature
|
HELOC
|
Personal Loan / Credit Card
|
|
Interest Rate
|
Typically 6–8%
|
15–25%
|
|
Flexibility
|
Borrow, repay, borrow again
|
Fixed amount, no reuse
|
|
Collateral
|
Your home
|
None for unsecured loans
|
|
Tax Deductible?
|
Often yes, for home improvements
|
No
|
As the table shows, a HELOC can be a more affordable and flexible alternative to high-interest credit cards or personal loans.
SmartRefi: Maximizing Your Savings
A HELOC is one of many ways to tap into your home’s value. Another option is SmartRefi with SNMC, which analyzes your mortgage and helps identify strategies that could save you thousands. Whether it’s a lower rate, shorter term, or a cash-out refinance, SmartRefi ensures you make informed decisions for your unique situation.
HELOC FAQ
Q: How much can I borrow with a HELOC?
A: Lenders typically allow up to 85% of your home’s value minus what you owe on your mortgage.
Q: Are there fees?
A: Some HELOCs have minimal application fees, appraisal fees, or annual maintenance fees, but these are generally lower than fees for personal loans or credit cards.
Q: Is the interest tax-deductible?
A: If used for home improvements, interest may be deductible under current IRS rules. Consult a tax advisor to confirm.
Q: What’s the difference between a HELOC and a home equity loan?
A: A HELOC is a revolving line of credit, while a home equity loan provides a lump sum with fixed payments. HELOCs are more flexible for ongoing expenses.
Take Action Today
Your home’s equity is a powerful financial tool that can help you fund renovations, consolidate debt, or manage unexpected costs—all on your terms. Don’t just refinance—SmartRefi with SNMC can help you find the best strategy to save money and maximize your options.
Find a loan pro today to discuss your options or apply now, and start leveraging the “credit card you didn’t know you had.”
It’s Better Here™.
