"Several options allow homeowners to get the cash they need to make home improvements, invest, or cover today’s higher cost of living by accessing their increased equity."

A Home Equity Line of Credit (HELOC) converts a portion of a property’s established equity into a line of credit that can be used much like a credit card, providing homeowners a source of funds at a significantly lower rate than most credit cards or personal loans. According to Forbes, the average credit card interest rate in 2023 is 22.77%. The initial repayment phase with HELOCs is comprised of Interest-only payments based on the used portion of funds and are structured to be relatively manageable and affordable. Additionally, HELOCs are essentially treated like cash-out refinances, but the underwriting and processing time is typically much shorter than with a standard mortgage, especially when working with a mortgage broker rather than a local bank or credit union.  

"There are a number of ways for homeowners to get the funds they need without taking out costly personal loans, using high interest credit cards, or resetting an existing mortgage’s low rate or term."

Inflation has affected the price of everything from gas to grapefruits, but it’s also helped boost property values and homeowners’ equity. Many consumers locked in historically low mortgage rates a couple years ago and don’t want to lose that rate or reset the clock on the term of their loan by selling or refinancing. However, several options allow homeowners to get the cash they need to make home improvements, invest, or cover today’s higher cost of living by accessing their increased equity.

Reverse Mortgages can make it possible for seniors at least 62 years old to fund their retirement with a source of monthly income and/or a line of credit, or a lump sum. These loans are regulated by the Federal Housing Administration and are designed to allow seniors to age in place, in the best environment for them, while maintaining their financial independence. Homeowners can customize their monthly budget and set aside a reserve for medical bills and the unexpected. Plus, the unused portion of the line of credit grows regardless of how the home appreciates. The monthly allotments from a Reverse Mortgage aren’t considered income, so they aren’t taxable and won’t interfere with Social 

Security income restrictions. Since the loan is only based on the value of the home and the youngest homeowner’s age, applicants aren’t required to provide nearly as much of the documentation necessary with traditional mortgages, making Reverse Mortgages much easier to qualify for. Most importantly, homeowners always retain the title to their home. 

~ Chad Moore, NMLS #165458  
The Mortgage Market of Delaware 
302-236-9397 - Chad@TheMortgageMarketofDelaware.com 

Cash-out Refinances are still an option even in this market, particularly for homeowners who want to drop their FHA mortgage and the Private Mortgage Insurance attached to it. PMI remains a part of the monthly payment for the life of an FHA loan, but homeowners can refinance into a Conventional mortgage with no mortgage insurance once their loan balance reaches 78% of the property value. With how much property values have increased over the last few years, the time to refinance may have arrived sooner than many homeowners with FHA mortgages expected. Additionally, some lenders offer flexible terms, making it possible for the 

There are a number of ways for homeowners to get the funds they need without taking out costly personal loans, using high interest credit cards, or resetting an existing mortgage’s low rate or term. Even a traditional cash-out refinance in the current housing market can benefit homeowners by removing their PMI and freeing up some room in their monthly budget. Homeowners whose financial situations could use an influx of cash should consult a Mortgage Loan Originator to determine the estimated current value of their home and discuss the options for accessing their equity. 

new mortgage to have the same term as what was left on the previous mortgage. If there were 17 years left on the original mortgage, the new mortgage can have a term of 17 years so there’s no need to restart the repayment clock.

​Accessing Your Home's Equity for the Cash You Need

The Mortgage Market of Delaware, LLC