Personal Finance
Your Home Might Be Worth More Than You Think — Here's How That Can Work In Your Favor
If your home has gained value, you could turn that equity into cash — without refinancing or taking on high monthly payments.
If you’ve owned your home for a few years, you might be sitting on more value than you realize. Thanks to rising home prices in many areas, homeowners across the country are building equity — often without even trying.
That extra equity could be the key to finally paying off high-interest debt, funding long-delayed upgrades, or simply creating more breathing room in your budget. And the best part? You don’t have to sell your home, refinance, or take on a large monthly payment to access it.
What Is Home Equity — And How Does It Grow?
Home equity is the difference between your home’s current value and what you still owe on your mortgage. That number increases in two ways:
- You pay down your mortgage, gradually increasing the share of the home you truly own
- Your home’s market value rises, giving you more equity without lifting a finger
Value growth is often driven by things like:
- Neighborhood improvements (parks, schools, shopping)
- Local housing demand and limited inventory
- Upgrades you’ve made to the property (like a kitchen refresh or new flooring)
- Curb appeal, landscaping, or even new infrastructure in the area
For example, if your home has gone up $40,000 in value and you’ve paid off $20,000 of your loan, you’ve added $60,000 in equity. That’s money you may be able to put to work — without moving or refinancing.
How Rising Home Values Are Boosting Homeowner Wealth
If you bought your home before or during the pandemic, it may be worth significantly more today. In 2024 alone, home prices rose 4.5% nationally, and over the past three years, they’ve increased more than 14%.
That appreciation has pushed total homeowner equity in the U.S. to a record $35 trillion, according to the Federal Reserve — making it one of the largest sources of wealth for everyday Americans.
The takeaway? You may be in a much stronger financial position than you think — and you don’t have to wait for a sale to benefit from it.
Ways You Can Use Home Equity Without Moving
Tapping into your home’s equity doesn’t mean giving up the place you love. More homeowners are using that built-up value to make life easier, both now and in the future.
You could use your equity to:
- Pay off high-interest credit cards or personal loans
- Cover medical expenses, tuition or family support
- Fund renovations or necessary home repairs
- Start or grow a business, or invest in retirement savings
- Build an emergency fund for peace of mind
The Catch: Many Equity Options Come With Tradeoffs
While there are several ways to access your equity, they often come with financial pressure — like added debt or higher monthly payments.
Here’s a quick look at the most common tools:
- Home equity loan: A lump sum that adds a second mortgage to your budget, with full principal and interest payments
- HELOC: A credit line that you borrow against over time, but often comes with variable interest and unpredictable payments
- Cash-out refinance: Replaces your existing mortgage with a larger one — meaning you may lose a favorable rate and face new closing costs
If those options feel more overwhelming than relieving, you're not the only one. More and more homeowners are seeking a simpler, more flexible path.
A Smarter Way To Use Your Equity — With Lower Payments And More Flexibility
Instead of refinancing or stacking more payments into your monthly budget, a new approach is gaining traction: equity sharing. Unison’s Equity Sharing Home Loan is a unique way to access your equity — with lower monthly payments and more flexibility than traditional second mortgages.
This option allows you to access up to $400,000 in cash from your home’s equity — without refinancing or taking on the large monthly payments that often come with traditional loans. It’s designed for homeowners who want to stay put, lower financial pressure, and make their equity work for them.
- You receive a lump sum now
- You make interest-only payments for 10 years
- You can defer up to 25% of the interest until the end of the loan
- When the term ends (typically when you sell, refinance, or buy out the loan), you repay the original amount — plus a small share of your home’s appreciated value
If your home doesn’t increase in value, Unison’s return may be reduced — and in some cases, their share of appreciation could be zero. And if your circumstances change, you can pay off the loan early without penalty.
Is This The Right Fit For You?
If you’ve built strong equity and want to stay in your home, this option could help you unlock cash — without refinancing, taking on new debt, or adding another full loan to your monthly budget.
It’s a smart move if you're looking for:
- Lower monthly payments
- Flexible payment structure with interest-only terms and optional deferral
- A way to keep your current mortgage and interest rate
- Funds for renovations, life expenses, or financial breathing room
You’ve worked hard to build equity. Now it’s time to put it to work — on your terms.
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.
