Dave W. tapped into his home's equity to pay off debt
Working in the housing market during the 2008 crash, Dave W. saw a significant slowdown in his employment, forcing him to take on business loans and credit card debt to fund life.
Dave’s goal was to become debt-free, however, interest payments kept putting him further and further behind. As a mortgage industry veteran himself, he also understood the volatility of the lending market. “A cash-out refinance would only make sense if I didn’t need the money,” he explained, noting that the better your credit and financial situation, the better your refinance rates. With his less-than-stellar financial situation, Dave knew it would be hard to make monthly loan payments on top of his monthly mortgage and other bills.
For a stressful moment, it seemed like an either-or situation: Dave would have to choose between staying in his home or paying down debt. So, he dug deeper into his options.
“I compared a variety of home equity investment products and traditional loans,” he shared, noting he was attracted to the idea of taking on an investor in his home as a loan alternative. It would let him avoid another monthly payment and he knew his home would appreciate in value over time, allowing him to share that growth in exchange for cash now. Unlike other home equity investment products, Hometap was willing to invest in his owner-occupied condo. This was critical for Dave whose lifestyle is shaped around his beachfront condo.
After carefully weighing his options, Dave chose Hometap. “Hometap delivered upon everything they said they would. There were no surprises, which is very refreshing for the [home finance] industry,” he explained. Dave also appreciated Hometap’s responsive customer service. Using the funds from his Hometap Investment to eliminate nearly $2,000 a month in bill payments, Dave was relieved he could maintain his home and lifestyle and pay down his debt. “I’m glad I found an option that doesn’t force me to choose between financial and life goals.”