How Bill Used His Equity to Pay Off His HELOC and Reclaim Peace of Mind

Bill W. had lived in his California condo for more than 30 years, and in that time he'd built up a lot of equity. The home he'd purchased for around $110,000 was now worth roughly $850,000. But being equity-rich didn't mean his monthly finances felt easy to manage.

A couple of years earlier, Bill had taken out a HELOC — a $58,000 balance that came with a monthly payment he'd been carrying ever since. On top of that, he had a car loan, some insurance costs, and other bills that were quickly adding up. He wanted a way to consolidate everything so he could stop worrying about making significant payments month after month.

"It's a big stress factor every month to try to make big payments just to satisfy my lifestyle," Bill said.

Weighing His Options

Bill didn't rush his decision, comparing his options before choosing the path that made the most sense for his situation. "I looked at three companies initially," he explained.

What ultimately won him over was how well a home equity investment fit his goals. He was looking to pull out around $200,000, less than 25% of his equity. And he received it in cash, in exchange for a share of his home's future value — with no monthly payments. For a homeowner like Bill, who was focused on relieving monthly pressure rather than adding to it, that structure was exactly right, and he had 10 years to settle.

Looking back, Bill only had one regret. "I only wish I'd known about this two-plus years ago when I got a HELOC, because I would have never gotten that. It didn't satisfy my financial needs."

A Simpler, Less Stressful Life

Throughout the process, Bill worked with his Investment Manager, Joe. "He was the only person I interacted with from start to finish," Bill said. A self-described organized, detail-oriented person, Bill moved through the paperwork in just a couple of days. "The actual [Investment] closed in 15 days, which [Joe] said was the fastest he'd ever done one."

Bill also appreciated the transparency around pricing. "My Investment [Manager] went over all the pricing. We went over it two or three times so that I fully understood, and any questions I had, he answered to my satisfaction."

With his funds, Bill was able to handle what had been weighing on him. He settled the $58,000 HELOC, paid off a car loan, covered some insurance and other bills, and even took care of his mortgage and recurring household bills through the end of the year — all without taking on a new monthly payment.

The result was the peace of mind he'd been after. "Now I can live comfortably for a long time and not have to worry about, ‘Am I going to be able to make ends meet?"

Interested in finding out how much of your equity you might be able to tap into with a home equity investment? It takes just seconds to get an Estimate.

Disclaimer: This homeowner was compensated for providing Hometap with an interview about his Investment experience.