A row of blue and white lines on a white background.
The logo for luminate bank is a circle with dots on it.

Unlocking the Power of Your Home Equity: How to Upgrade Without Breaking the Bank

webadmin • October 17, 2024

Unlocking the Power of Your Home Equity: How to Upgrade Without Breaking the Bank

If you’re like many homeowners who purchased a home when interest rates were low, you might be hesitant to sell, even if your current space is starting to feel a bit tight. After all, it’s hard to give up that sweet deal, right?
But what if you could move into a bigger, better home without significantly increasing your monthly mortgage payment? That’s where the power of your home equity comes in.

What Is Home Equity?

Home equity is the difference between what your home is worth and what you owe on your mortgage. Over time, as you pay down your loan and your home appreciates in value, your equity grows. This is essentially money you’ve built up just by living in your home! But instead of letting that money sit, why not put it to work for you?

Benefits of Using Home Equity to Upgrade Your Home

  1. Get More House for the Same Payment: Let’s say you bought your home a few years ago for $300,000 with minimal down payment, and now you've built up $50,000 in equity. With that extra equity, you could potentially purchase a larger home—say, $350,000 or even more—while keeping your monthly payment in the same range. How? By using your equity as a larger down payment on the new home, you're borrowing less and keeping your payments lower.
  2. Consolidate or Pay Off Debt: Struggling with high-interest debt like credit cards or personal loans? Tapping into your home equity could help you pay off those debts and save on interest payments. Using equity to pay down debt can simplify your finances and potentially free up more cash for other needs or future investments.
  3. Invest in Property: Dreaming of expanding your real estate portfolio? You can use the equity in your current home as a down payment on an investment property. Real estate is one of the most stable ways to build long-term wealth, and leveraging your current home’s value could be your ticket into the rental or vacation home market.'


A Real-World Example: How Equity Works in Your Favor

Let’s break it down with a simple numbers example.
  • You bought your home for $300,000 a few years back.
  • Over time, you've paid off some of your mortgage, and the value of your home has increased, giving you $50,000 in equity.
  • Now, you want to move up to a $350,000 home. You use your $50,000 in equity as part of your down payment on the new house, which means you’re only financing $300,000.

With interest rates still favorable, your monthly mortgage payment could be very similar to what you’re paying now, but you’re living in a home that better fits your current lifestyle. Win-win!

Don’t Let Low Interest Rates Hold You Back

It’s easy to get attached to your low mortgage rate, but don’t let that stop you from exploring the possibilities your home equity offers. Whether you’re looking to upgrade, pay off debt, or invest in property, your equity is a powerful tool that can help you move forward—without feeling like you’re starting over.
At Luminate Home Loans, we’re here to help you understand how to best use your home equity to your advantage. Ready to take the next step? Let’s chat about how we can make your dream home a reality, all while keeping your finances in check.

Big News! We’re Becoming Luminate Bank—Here’s What It Means for You

By webadmin • February 16, 2025
Here at Luminate Home Loans, we’re always looking for ways to offer more value to our clients and partners. That’s why we’re thrilled to announce that we’re now a wholly owned subsidiary of Luminate Bank®—and soon, we’ll officially transition under the Luminate Bank® name.

Higher Mortgage Rates Are the New Normal—Here’s What That Means for Homebuyers in 2025

By webadmin • February 6, 2025
For years, homebuyers have been hoping for a return to the ultra-low mortgage rates seen during the pandemic. But as we move through 2025, it’s becoming increasingly clear that today’s rates—hovering between 6% and 8%—aren’t going anywhere.

Luminate Bank Welcomes Josh Eifert as CFO

By Luminate Marketing Team • February 4, 2025
Luminate Bank® Welcomes Josh Eifert as Chief Financial Officer, Honoring Legacy of Dave Turk [Minneapolis, Minn.] – [2/4/2025] – Luminate Bank® is proud to announce the appointment of Josh Eifert as its new Chief Financial Officer, succeeding Dave Turk, who has played a pivotal role in shaping the company's strong financial foundation. Josh brings a wealth of experience and strategic vision to Luminate Bank, with 26 years in the banking industry. Most recently, Josh served as CFO at Tradition Capital Bank in Edina, Minnesota, where he led the financial strategy during its remarkable growth from $300 million to more than $2.5 billion in total assets. Before his tenure as CFO, Josh contributed to Tradition Capital Bank in other key financial roles. He began his career with Norwest and Wells Fargo Banks, gaining extensive expertise in financial and operational capacities. Luminate Bank's leadership transition reflects the company's thoughtful succession planning, ensuring its financial strategies remain robust and forward focused. Under the leadership of Dave Turk, Luminate Bank has built an exceptional financial infrastructure, delivering consistent results and creating a foundation that positions the company for continued success. Luminate Bank's CEO, Marc Campbell, shared his confidence in the appointment: "Josh not only brings exceptional financial acumen and strategic insight to Luminate Bank, but he also embodies the principles that define our organization: integrity, innovation, and a steadfast commitment to excellence," Luminate Bank's CEO, Marc Campbell, shared with confidence. "His leadership will ensure our financial strategies succeed and inspire confidence across all who depend on us." "I am honored to join Luminate Bank at such an exciting time. The company's remarkable history of financial excellence and its forward-thinking approach align perfectly with my values and vision," stated Josh Eifert. "I look forward to collaborating with the talented leadership team to build on this strong foundation and drive continued success for our customers, employees, and stakeholders." Josh graduated from the University of Minnesota with a degree in finance and completed the Graduate School of Banking at Colorado. CEO Marc Campbell expressed gratitude for retiring CFO Dave Turk's contributions, saying, "Dave has been instrumental in positioning Luminate as a financial leader. His dedication, insight, and stewardship will always be a part of our company's legacy." Josh Eifert will officially assume his role on February 18, 2025. About Luminate Bank® At Luminate Bank, We Open Doors—empowering individuals and families to achieve their financial dreams through personalized service and innovative digital solutions. As a nationwide bank headquartered in Minneapolis, Minnesota, we are committed to helping our clients meet their financial goals with a blend of modern technology, traditional values, and the trusted guidance of experienced professionals. Known for our exceptional commitment to customers, we take pride in delivering a seamless, supportive experience for every step of the journey. Our dedicated mortgage division has branches and a team of loan originators across the US, making expert home financing solutions accessible to communities nationwide. Luminate Bank is committed to safeguarding your money and accounts with FDIC insurance coverage up to applicable limits. Learn more about how we can open doors for you at www.luminate.bank , follow us on Instagram, LinkedIn, and Facebook, or call (952) 939-7200. For media inquiries, please contact: Debbie Schwake, CMO debbie.schwake@luminate.bank
Share by: