Your Home Equity Could Help You Get Ahead of High-Interest Debt

Mortgage rates remain high by recent standards, but many homeowners have built substantial equity. If credit cards or other debts are taking too much of your monthly income, your home equity may give you a way to pay them down now.

At West Capital Lending, we have several ways to approach this. A cash-out refinance lets you replace your current mortgage and use part of your equity to pay off debt. If you have a low rate on your first mortgage, a home equity loan or line of credit may be a better fit.

We also have products designed for different income and credit situations. If you’re self-employed, certain programs use bank statements to help document your income. People on fixed incomes may qualify as well. Some programs accept credit scores as low as 600, and certain products can fund in as little as five days, depending on the loan and how quickly we receive the required documents.

For clients who need time to improve their finances, some short-term products offer interest-only payments or no required payments for the first six months. Those features depend on the program, and interest may still accrue during the no-payment period.

The goal is to build a plan around your numbers. Paying off high-interest debt may lower your monthly obligations and improve your debt-to-income ratio. It may also help your credit score over time, putting you in a stronger position to refinance if rates fall or you qualify for better terms later. A future refinance is never guaranteed, so the loan you choose today needs to make sense on its own.

Before using your equity, we’ll compare your current payments with the new payment, closing costs, and total borrowing cost. That way, you’ll see whether the move helps your monthly budget and what it costs over time.

If you’re sitting on equity while high-interest debt is weighing you down, reach out. I’ll review your mortgage, income, credit, and debts, then show you which options fit.

Ali Younes
West Capital Lending