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Why the Holidays Are the Right Time for a Mortgage Checkup

by | Nov 18, 2025 | Blog, Mortgage Education, Refinance

Holiday expenses and home equity

The holiday season is a time for celebration, reflection, and planning ahead—but it’s also one of the most expensive times of the year. Between travel, gifts, entertaining, and preparing for a fresh start in the new year, many households feel the financial strain. That’s why now is the perfect moment for a mortgage checkup. By reviewing your loan and exploring your home’s equity before the holidays, you can uncover opportunities to lower payments, access cash for upcoming expenses, and step into the new year with greater financial peace of mind.

1. Holiday Expenses Add Up

From airfare and hotel stays to hosting large family dinners, the holidays are often the most expensive time of the year. Instead of relying on high-interest credit cards, tapping into your home equity could give you a lower-cost way to cover those expenses.

 

2. Record Levels of Home Equity

According to the June 2025 ICE Mortgage Monitor, U.S. homeowners have over $11.5 trillion in tappable equity—the highest on record. That means your home is likely worth more today than when you bought it, and you may be able to access cash without significantly changing your monthly payment.

 

3. Set Yourself Up for the New Year

The holidays are also about looking ahead. A mortgage checkup now ensures you start 2026 prepared—whether your goals are to remodel, pay for education, or consolidate debt. Knowing your options today means you can make smarter financial decisions tomorrow.

 

Real-Life Scenarios: How Homeowners Use Their Equity

  1. The Holiday Remodel
  2. A family wants to update their kitchen before hosting Christmas dinner. Using a cash-out refinance, they access $30,000 of their equity to complete the renovation—making the home more enjoyable now and more valuable long-term.
  3. Debt-Free in the New Year
  4. Another homeowner carries $20,000 in credit card balances at 22% interest. With a HELOC (Home Equity Line of Credit), they consolidate that debt at 7%, reducing their monthly payments and saving thousands in interest.
  5. College Tuition Paid
  6. Parents preparing for spring tuition bills use equity to cover education costs. Because a HELOC works like a revolving credit line, they only borrow what’s needed when it’s needed, rather than taking out a large lump-sum loan.
  7. Peace of Mind for Emergencies
  8. A couple sets up a HELOC before the holidays—not because they have an immediate need, but because they want the reassurance of a financial cushion in case unexpected expenses arise.

 

Ways to Access Your Home’s Equity

  • Cash-Out Refinance: Replace your existing mortgage with a new one, taking out extra cash from your equity. This can also allow you to adjust your loan term or interest rate.
  • HELOC (Home Equity Line of Credit): Works like a credit card secured by your home—borrow, repay, and borrow again as needed. Great for ongoing expenses or projects.
  • Home Equity Loan: A lump-sum loan with fixed payments, ideal for one-time expenses like major renovations.

 

HELOC vs. Credit Cards: A Smarter Way to Pay

One of the biggest advantages of using your equity is cost. Credit card interest rates are averaging 20%+, while HELOCs often fall below 8%. That means you can fund big expenses—like holiday travel or debt consolidation—without paying sky-high interest.

 

FAQs: Your Mortgage Checkup & Equity

 

Q: What if I’m not ready to refinance?
A: That’s okay. A checkup is about knowing your options now so you’re prepared for the future.

 

Q: How much equity can I access?
A: Lenders typically allow you to borrow up to 80–85% of your home’s value, minus your current mortgage balance.

 

Q: Is it expensive to refinance or open a HELOC?
A: Costs vary, but in many cases the long-term savings or benefits outweigh the fees. Your loan officer can provide an exact breakdown.

 

Q: Is HELOC interest tax-deductible?
A: In many cases, yes—especially if the funds are used for home improvements. Always consult a tax professional.

 

The Bottom Line

The holidays are about family, joy, and new beginnings. But they’re also a season when expenses grow and financial planning matters most. A quick mortgage checkup before the holidays can help you:
  • Lower your monthly payments
  • Access cash from your equity
  • Consolidate debt at a lower rate
  • Plan ahead for 2026 with confidence

 

Don’t just refi, SmartRefi with SNMC and let us help you save thousands.
Find a loan pro today!
Source: ICE Mortgage Monitor, June 2025