Jordi Salas / Getty Images It might not make sense to use your home equity to pay off your mortgage. Key Takeaways Technically, you can use home equity financing to pay off a home loan, but that's often counterproductive. The only ways to access home equity are to sell your home or take out new financing, which comes at a cost. The nearly 50% rise in home values over the past six years—from $243,398 in November 2019 to $359,241 in November 2025—has helped many homeowners enjoy a surge in home equity ...

Core Insights - Better.com has introduced a streamlined approval process for self-employed, small business, and gig workers to qualify for a home equity line of credit (HELOC) up to $400,000, utilizing a "bank statement only" approach [1][2]. Group 1: Approval Process - The new HELOC program eliminates the need for tax returns, profit-and-loss statements, or W-2s, making it easier for small business owners and self-employed individuals to qualify [2][4]. - Borrowers can qualify using 12 or 24 months of business or personal bank statements, and no physical home appraisal is required for lines of credit up to $400,000 [4]. Group 2: AI-Driven Underwriting - The underwriting process is powered by an AI system named Tinman, which automates verification and detects alternative data sources, reducing the need for extensive document reviews [3]. Group 3: Market Potential - The program is expected to expand Better's HELOC reach significantly, with estimates suggesting that over 6,000 customers who were previously denied could have been served, translating to $600 million in potential home equity loans [5]. Group 4: Target Borrowers - The program is designed for various borrower types, including independent contractors, freelancers, and those with fluctuating incomes who require flexible qualifying guidelines [6][8]. Group 5: Application Process - The application process for Better's Bank Statement HELOC is fully online, and the product is available for primary, second, and investment homes across all states except Texas [9].