In today’s financial landscape, understanding the equity in your home can be a game-changer. With rising credit card debt and the cost of education, leveraging your home equity might be the key to achieving financial stability.
What is Home Equity
Home equity is the difference between your home’s market value and the outstanding balance on your mortgage. As you pay down your mortgage or as your home’s value increases, your equity grows.
The Growing Trend of Home Equity Loans
According to the MBA’s 2025 Home Equity Lending Study, there has been a significant increase in home equity loans and lines of credit. In 2024, originations rose by 7.2%, with a 10.3% growth in total debt outstanding. This trend is expected to continue, with projections of nearly 10% growth in HELOC debt and 7% in home equity loan debt in 2025.
The image above shows that in 2024, borrowers utilized their home equity for various purposes.
- Approximately 39% of borrowers used it for debt consolidation, reflecting a growing need to manage rising non-housing debt.
- Home renovations accounted for 46% of the usage.
- While 6% of borrowers tapped into their equity for emergency cash management and other big-ticket financing, such as education and down payments.
Types of HELOCs
- Variable Rate: Offers flexibility with interest rates that can change over time.
- Fixed Rate: Provides stability with a consistent interest rate throughout the term.
- Interest Only: Allows for lower initial payments by paying only the interest for a set period.
Why Tap into Your Home Equity?
- Debt Consolidation: With non-housing debt, such as credit cards and car loans, increasing by 56% over the past decade many homeowners are using their equity to consolidate debt. This can lead to lower interest rates and simplified payments.
- Education Expenses: As a new school year approaches, many families face the financial burden of college tuition. Using home equity can be a strategic way to fund education without resorting to high-interest loans.
- Financial Flexibility: Whether it’s for emergency cash management or big-ticket financing, such as a second home, your home equity can provide the financial flexibility you need.
Start by connecting with one of our loan officers to discuss which type of HELOC best suits your personal goals.
As summer winds down and the back-to-school season kicks in, many families are thinking about education, new beginnings, and financial planning. Whether you’re a parent preparing to send your child off to college, an empty nester looking to downsize, or a college student planning for the future, this time of year presents unique opportunities in the mortgage market. Let’s explore how mortgages can play a vital role in your back-to-school plans.
1. Cash-Out Refinancing for College Tuition
For parents of college-bound students, financing education can be a significant concern. One option to consider is a cash-out refinance. By tapping into your home’s equity, you can access funds to cover college tuition and related expenses. This approach often comes with lower interest rates compared to student loans, making it a financially savvy choice. Plus, you can consolidate your debt into one manageable monthly payment.
2. Buying a Home in a Good School District
If you’re considering a move, back-to-school season is an excellent time to buy a home, especially in a neighborhood with a reputable school district. Investing in a home in a good school area not only benefits your children’s education but can also enhance your property’s value over time. Families often prioritize homes in desirable school districts, making them a smart investment for your future.
3. Empty Nesters: Downsizing and Investing
As children head off to college, many empty nesters find themselves with extra space. This is a perfect opportunity to downsize to a more manageable home. The proceeds from selling your larger home can be used for various purposes, such as funding your child’s tuition or purchasing an investment property. An investment home near the college can provide your child with a place to live while also generating rental income.
4. College Students: Start Saving for Your Future Home
For college students, now is the time to start thinking about your financial future. As you focus on your studies, consider setting aside a portion of your income or financial aid for a future home purchase. By saving early, you’ll be better prepared to enter the housing market after graduation. Understanding the mortgage process and saving for a down payment can set you up for success in homeownership.
5. Refinancing for Better Financial Health
Back-to-school season is also a great time to evaluate your current mortgage. If you haven’t refinanced in a while, you may be able to secure a lower interest rate, reduce your monthly payments, or shorten your loan term. This can free up funds for school supplies, extracurricular activities, or even a family vacation.
6. Home Equity Lines of Credit (HELOCs)
If you’re not ready for a cash-out refinance, consider a Home Equity Line of Credit (HELOC). This flexible option allows you to borrow against your home’s equity as needed, making it a great way to cover unexpected expenses during the school year, such as tuition increases or additional fees.
Conclusion
As the back-to-school season approaches, it’s essential to consider how mortgages can fit into your financial plans. Whether you’re looking to finance your child’s education, buy a new home in a great school district, downsize as an empty nester, or prepare for future homeownership as a college student, there are numerous opportunities to explore.
If you have questions about your mortgage options or need assistance navigating the process, don’t hesitate to
find a loan officer near you!
It’s Better Here™
If you’ve found your dream home but haven’t sold your current one, you might have heard about bridge loans. Let’s demystify this financing option and explore why newer alternatives might better serve your needs.
Understanding Bridge Loans
A bridge loan is a short-term financing solution that helps homeowners purchase a new home before selling their existing one. Typically lasting 6-12 months, these loans literally “bridge” the gap between two transactions.
How Traditional Bridge Loans Work
• They’re short-term loans with higher interest rates
• Usually require excellent credit and significant equity
• Often come with substantial closing costs
• Typically involve complex approval processes
• Usually require payments on both properties
The Hidden Challenges
While bridge loans can provide a solution, they often come with drawbacks:
Higher Costs: Interest rates are typically several points above standard mortgage rates
Double Payments: You’re often required to make payments on both the bridge loan and your existing mortgage
Time Pressure: The short-term nature can create stress to sell quickly
Strict Requirements: Many lenders have stopped offering bridge loans due to their complexity
A Better Solution:
The SN Cross Collateral Loan* exclusive to SecurityNational Mortgage was developed as an innovative alternative that addresses these common pain points. Our exclusive Cross Collateral Loan offers several distinct advantages. Instead of juggling two mortgages or rushing to sell, you can access the equity from your current home to purchase your next one.
Unlike a bridge loan, this program excludes the mortgage payment on your departing residence, and removes the home sale contingency when buying your next home. You’ll have 6 months to sell your existing home and eliminate the stress of timing two transactions perfectly, giving you the confidence to move forward when the right opportunity comes along.
Making your move in today’s competitive real estate market, timing is everything. While bridge loans were once the only option for buyers in transition, our Cross Collateral Loan offers a more modern, flexible approach. You can make strong, non-contingent offers on your next home while selling your current one on your own timeline.
Ready to learn more about how our Cross Collateral program can help you make your next move with confidence? Contact your loan officer today to explore your options. It’s Better Here™.
Find a Loan Officer.
*Only available in certain states.
In today’s fast-paced world, where apps can deliver dinner in minutes and markets swing by the hour, one investment still stands the test of time:owning a home. While the concept of “generational wealth” might sound lofty or out of reach, the truth is this — every mortgage payment you make, every improvement you add, and every year you hold onto your home… you’re building it.
Whether you’re considering buying your first home or you already have a keychain with your last name on the front door, here’s why homeownership is one of the most powerful tools for creating lasting wealth for your family.
What Is Generational Wealth, Anyway?
Generational wealth is the kind of financial advantage that gets passed down — not just enjoyed in your lifetime, but available to your children, and their children too. This isn’t just about money in a bank account. It can be property, investments, or any asset that grows over time. And real estate is one of the most accessible ways for everyday families to build it.
Why Homeownership Creates Wealth
1. Equity Grows While You Sleep
Every month you make a mortgage payment, a portion goes toward building equity — your ownership stake in the home. Over the years, that equity grows, especially as home values rise. Think of it this way: rent disappears. Equity stays.
2. Value Appreciation Over Time
Homes typically increase in value over the long haul. Even through market dips, history shows that real estate tends to recover and grow stronger — especially when held over decades. That increase in value becomes real wealth you can access through refinancing, selling, or when you pass on.
3. Leverage & Opportunity
With one down payment, you gain control over a large asset. That’s financial leverage — your 10–20% down gives you 100% of the appreciation. Few other investments offer that kind of return.
Real Stories: How a Home Becomes a Legacy
It’s not just about dollars and cents. A home becomes part of your family story:
- A couple buys a starter home and upgrades over the years, using the equity to help pay for their child’s college.
- A grandparent passes down a mortgage-free home, giving their children a head start many never had.
- A family builds wealth by investing in small improvements over time, then uses profits from a home sale to fund retirement or buy a second property.
This is how wealth gets built — quietly, steadily, one generation at a time.
Already a Homeowner? Here’s What You’re Doing Right
If you already own a home, congratulations — you’ve made one of the smartest financial decisions possible. Now, think long-term:
- Can you refinance to a better rate or shorten your term?
- Would a few home improvements raise your home’s value?
- Have you explored turning your home into a rental in the future?
Even if you’re years away from selling or passing it down, the seeds of legacy are already planted.
First-Time Buyer? This Is Your Doorway
For first-time buyers, the idea of “generational wealth” might feel abstract. But here’s what’s real:
- Homeownership puts you in control.
- It sets a foundation for long-term stability.
- And it creates options for your future — whether it’s growing your family, building passive income, or simply having a space that’s truly yours.
Ready to Start or Grow?
Whether you’re just stepping into the world of homeownership or looking to maximize the potential of your current home, know this: The best investment might be right under your roof. Talk to a trusted loan officer, explore your prequalification options, or check out tools like the SNapp Home App to manage the journey with ease. Your future — and your family’s — could begin with a front door key.
Looking to start or strengthen your homeownership journey?
Reach out to your loan officer today —to talk about your goals, your next steps, and the legacy you want to build. Don’t have a loan officer yet?
Find one here.
In the world of home buying, understanding your financial limits is crucial. Enter the
mortgage affordability calculator a sleek digital tool designed to help you navigate the often murky waters of home financing.
At its core, our calculator serves as a starting point, guiding you in determining how much home you can realistically afford. It evaluates your financial landscape, allowing you to assess how much mortgage you could comfortably handle. The calculator takes into account several key factors, including:
- Your income
- Existing debt obligations
- The size of your down payment
Buying power
Make informed decisions. According to the National Association of Realtors, understanding your affordability can save you from the heartbreak of falling in love with a property that’s just out of reach. By gaining clarity on your financial situation, you can set realistic expectations and avoid the pitfall of overstretching your budget.
Getting Started
To begin, input your financial details, including your monthly income, current debts, and any upfront cash you have for a down payment. The calculator also considers prevailing interest rates, which can significantly affect your monthly mortgage payments. Based on your inputs, you’ll receive a potential loan amount, home purchase price, and estimated monthly payment.
We encourage you to experiment with different financial scenarios. What if you increase your income? What if you reduce your debts? By playing around with various inputs, you can see how your affordability shifts, giving you a clearer picture of your home-buying potential.
Think of it as your financial roadmap, providing you with the confidence to explore properties that fit within your budget.
As a mortgage lender, we’ve helped countless families achieve their dreams of homeownership. We understand that owning a home isn’t always a walk in the park, but the benefits far outweigh the challenges. Let’s talk about why homeownership remains one of the most powerful ways to build long-term wealth and stability.
Building Equity, Not Someone Else’s Wealth
Every mortgage payment you make is like paying yourself instead of your landlord. While renters help their landlords build wealth, homeowners gradually increase their own net worth through equity. It’s like having a automatic savings account that grows over time.
Tax Benefits That Make a Difference
Homeownership comes with significant tax advantages, including the opportunities to deduct mortgage interest and property taxes. These deductions can lead to substantial savings come tax season, putting more money back in your pocket.
Freedom to Create Your Space
Want to paint your walls hot pink? Plant a garden? Finally get that dog you’ve always wanted? As a homeowner, you don’t need to ask for permission. Your home truly becomes your castle, allowing you to customize your space to match your lifestyle and preferences.
Protection from Rising Housing Costs
While renters face annual increases in their monthly payments, homeowners with fixed-rate mortgages enjoy more stable housing costs. In today’s inflationary environment, this predictability is more valuable than ever.
Let’s Be Real: It’s Not Always Easy
Homeownership comes with its own share of challenges. From unexpected repairs to property maintenance, being a homeowner means being responsible for everything that goes wrong. That leaky faucet? It’s on you now. The AC that decides to quit in August? Another problem to solve.
But here’s the truth: these challenges are temporary, while the benefits of homeownership are long-lasting. Every obstacle you overcome as a homeowner is an investment in your future and your family’s stability.
The Long-Term Perspective
When you’re writing that monthly mortgage check or dealing with a home repair, remember that you’re playing the long game. Homeownership is about building generational wealth, creating stability for your family, and investing in your future.
While the path to homeownership might not always be easy, it remains one of the most reliable ways to build wealth and create the life you want. As a company who’s helped many people and families navigate this journey, we can tell you that most homeowners look back and say, “It was all worth it.”
Ready to start your homeownership journey? Reach out to your loan officer to talk about your options and create a plan that works for you. Don’t have a loan officer yet? Find one
here.Remember, the best investment in your future might be the roof over your head.
