Need To Pay Down Debt Without Losing Your Low Mortgage Rate? Here’s How

If you’re feeling stretched by credit cards, car payments or student loans — all on top of your mortgage — you’re far from alone. The average U.S. household carries more than $105,000 in debt, and for many homeowners, that load is only growing.

Traditional debt consolidation options — like refinancing or second mortgages — often come with tradeoffs: higher monthly payments, more interest or losing your low mortgage rate.

But more homeowners are discovering a smarter way to tap into their home’s value — without resetting their mortgage or taking on the high monthly payments that often come with traditional loans. It’s a flexible approach that helps you lower monthly costs, simplify your finances and finally breathe a little easier.

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How Debt Consolidation Can Help You Regain Control

If you’re juggling multiple debts with different due dates and rising interest rates, consolidating can bring much-needed relief — both financially and mentally.
Here’s how simplifying your debt can help:

• One monthly payment is easier to manage than several.
• You may secure lower interest, especially when backed by home equity.
• You could significantly reduce your monthly payments.
• With fewer financial pressures, you can focus on savings, home upgrades, or handling the unexpected.

That said, consolidation isn’t right for every situation. It may not be the best fit if:

• You already have a low mortgage rate you want to keep
• You plan to sell or move soon
• The savings don’t outweigh the extended repayment timeline

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Can You Really Use Your Home Equity To Pay Off Debt?

Yes — and many homeowners are doing just that. With home values up in recent years, you may have more equity than you realize. That equity can be a powerful tool to knock out high-interest debt and reset your financial foundation.

You could use those funds to:

• Pay off credit cards or personal loans and cut back on compounding interest
• Consolidate multiple balances into a single, manageable payment
• Build an emergency fund to protect against future surprises
• Invest in home improvements that raise your property value

But not all equity-tapping tools are created equal — and some can come with big strings attached.

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Common Ways To Tap Your Equity — And Why They’re Not Always Ideal

There are several ways to access your home equity, each with its own advantages and tradeoffs:

• Home equity loan: You get a lump sum, but take on a second monthly payment of principal and interest. This can stretch your budget fast.
• HELOC (Home Equity Line of Credit): You borrow as needed over time, but variable rates and payment changes make it harder to plan.
• Cash-out refinance: You swap your current mortgage for a bigger one — but may lose a favorable interest rate and face new closing costs.

If none of those options sound like the right fit, especially if you’re trying to protect your mortgage rate or lower monthly payments, there’s an alternative worth considering.

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A Smarter Way to Use Your Equity — Without Touching Your Mortgage

Instead of adding more debt or giving up your mortgage, Unison’s Equity Sharing Home Loan offers a way to turn your home equity into cash — with lower monthly payments and more flexibility than a traditional loan.

Here’s how it works:

• Get up to $400,000 in cash, no refinance required
• Make interest-only payments for 10 years
• 25% of interest is automatically deferred until the end of the loan term
• Repay the original amount plus a portion of your home’s future appreciation
• No prepayment penalties if you want to pay off the loan early

And if your home’s value drops? Unison’s return may be reduced — offering some protection in uncertain markets.

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Why This Could Be a Smart Way to Take Control

If you're looking to pay down debt, ease monthly expenses, and hang on to your current mortgage rate, Unison’s Home Equity Loan could be the flexible solution you need.
It’s a great fit if:

• You want relief from financial stress — not more of it
• You’re carrying high-interest balances and want to pay them off faster
• You’d rather free up cash each month without the high payments that may come with traditional loans
• You like having the option to pay early — without penalty

You’ve worked hard for your home. Now, let it work for you.

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Visit Unison.com to see how much equity you could access — and get a personalized estimate with monthly payments that fit your life.

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Disclaimer: This article is sponsored by Unison and provides general consumer information only. It is not financial, legal, or investment advice. Consult a qualified professional before making decisions about home equity products. Borrowing against home equity involves risks, including increased debt, potential loss of equity if property values decline, and foreclosure if payments are not made. Unison’s Equity Sharing Home Loan requires a minimum FICO score of 680, at least 30% home equity, and other eligibility criteria; repayment includes the original amount, deferred interest, and a share of future home appreciation. Terms and availability vary by location. Contact Unison for details. This article contains links to third-party websites, which we do not endorse or control. Access these links at your own risk. Statements about home value appreciation are forward-looking and based on assumptions; actual results may vary.