{"id":2949,"date":"2025-06-16T15:51:53","date_gmt":"2025-06-16T22:51:53","guid":{"rendered":"https:\/\/www.unlock.com\/?p=2949"},"modified":"2025-06-16T15:51:55","modified_gmt":"2025-06-16T22:51:55","slug":"options-for-tapping-home-equity-without-monthly-payments","status":"publish","type":"post","link":"https:\/\/www.unlock.com\/blog\/home-equity\/options-for-tapping-home-equity-without-monthly-payments\/","title":{"rendered":"Options for Tapping Home Equity Without Monthly Payments\u00a0"},"content":{"rendered":"\n<p><strong>Key Takeaways<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Using a home equity loan to tap your home\u2019s equity requires regular monthly payments.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>However, there are several ways to access your equity that don\u2019t require monthly payments.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>These include home equity sharing, reverse mortgages, sale-leaseback transactions, and co-ownership arrangements.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>To choose the best method for your needs, consider how much you need to borrow and how long you\u2019d like to remain in the home, among other factors.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>Homeowners in the U.S. are sitting on a combined $17.3 trillion in home equity, according to a 2025 quarterly report from Cotality. That\u2019s a lot of money that could be <a href=\"https:\/\/www.unlock.com\/blog\/home-remodel\/building-a-comprehensive-plan-for-your-home-improvements\/\" target=\"_blank\" rel=\"noreferrer noopener\">used for home improvements<\/a>, education costs, even daily expenses. But the most common methods of accessing that equity come with interest charges \u2013 and monthly payments, which can be a drag on your household budget.&nbsp;<\/p>\n\n\n\n<p>According to Unlock\u2019s recent economic survey, 42% of homeowners would be willing to consider accessing their equity if they could do it without a loan or another monthly payment. Fortunately, there are several ways of accessing your home\u2019s equity that don\u2019t involve making a monthly payment (or <a href=\"https:\/\/www.unlock.com\/blog\/home-equity\/how-to-tap-your-home-equity-without-selling-your-home\/\" target=\"_blank\" rel=\"noreferrer noopener\">selling your home<\/a>). Let\u2019s take a look at how each of these options work, their pros and cons, and which questions to ask to decide which method might work best for you.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"gb-headline gb-headline-5e83f998 gb-headline-text\">Four ways to tap equity without a monthly payment <\/h2>\n\n\n\n<p>A <a href=\"https:\/\/www.unlock.com\/blog\/home-equity\/equity-based-loans-versus-home-equity-agreements\/\" target=\"_blank\" rel=\"noreferrer noopener\">home equity loan<\/a> or a home line of credit are not your only options for accessing the equity you\u2019ve built in your home. If you want access to funds but don\u2019t need the headache of another monthly payment, consider one of the following four alternatives.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"gb-headline gb-headline-36022385 gb-headline-text\">Home equity agreement <\/h3>\n\n\n\n<p>If you\u2019re not familiar with a <a href=\"https:\/\/www.unlock.com\/blog\/home-equity\/how-a-hea-works-home-equity-agreements-made-easy\/\" target=\"_blank\" rel=\"noreferrer noopener\">home equity agreement<\/a> (HEA), think of it as sharing a portion of the equity of your home in the future, in exchange for cash up front today. Home equity sharing lets you continue to live in and own your home, and there are no monthly payments or interest charges to worry about.\u202f&nbsp;<\/p>\n\n\n\n<p>Home equity agreements typically offer more flexible qualification requirements than traditional loans. For example, with Unlock\u2019s HEA, you may be able <a href=\"https:\/\/www.unlock.com\/blog\/home-equity\/how-do-i-qualify-for-an-unlock-home-equity-agreement-hea\/\" target=\"_blank\" rel=\"noreferrer noopener\">to qualify<\/a> with a minimum credit score of 500 and at least 30% equity in your home.\u202f You receive funds after completing the <a href=\"https:\/\/www.unlock.com\/blog\/home-equity\/how-to-apply-for-an-unlock-home-equity-agreement-hea\/\" target=\"_blank\" rel=\"noreferrer noopener\">HEA application<\/a> process and you are able to use the money however you like for between 10 and 30 years, depending on the HEA provider. With Unlock, you can <a href=\"https:\/\/www.unlock.com\/blog\/hea\/how-to-pay-off-a-home-equity-agreement\/\" target=\"_blank\" rel=\"noreferrer noopener\">settle the agreement<\/a> any time during the term by selling your home or buying back your equity with cash on hand. That\u2019s it \u2013 no loans, no interest payments, no hassle.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"gb-headline gb-headline-18c90156 gb-headline-text\">Reverse mortgage <\/h3>\n\n\n\n<p>Another popular method of accessing your home equity is via a <a href=\"https:\/\/www.unlock.com\/blog\/home-equity\/what-is-a-reverse-mortgage-and-how-does-it-work\/\" target=\"_blank\" rel=\"noreferrer noopener\">reverse mortgage.<\/a> With a reverse mortgage, the bank pays you \u2013 not the other way around. You can get a lump sum of funds and you don\u2019t need to pay it back until you move out or sell the home. Keep in mind that for most reverse mortgages, including a Home Equity Conversion Mortgage (HECM), the homeowner must be 62 or older.&nbsp;<\/p>\n\n\n\n<h3 class=\"gb-headline gb-headline-9a239a7c gb-headline-text\">Sale-leaseback<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>A sale-leaseback transaction allows you as the homeowner to sell the home, receive the proceeds of the sale, and lease the property back from the buyer. In effect, the buyer becomes your landlord. Because you\u2019re leasing the property, you get to remain living in it, even as you enjoy the money you received from selling it. While sale-leasebacks rose in popularity among commercial real estate properties during the pandemic, residential real estate owners are also increasingly exploring them as an alternative way to tap equity.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"gb-headline gb-headline-51995c63 gb-headline-text\">Co-ownership<\/h3>\n\n\n\n<p>A less common method is co-ownership. With co-ownership, you share the ownership of \u2013 and equity in \u2013 a property with someone else. For instance, you might sell a \u201cshare\u201d or portion of ownership to someone else and receive funds in return. Depending on the agreement, you can remain in the home until you sell, and your share of the home remains yours. When you sell, the co-owner would receive a portion of the proceeds according to how big a share they own, and you receive the rest.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"gb-headline gb-headline-6f4f6b89 gb-headline-text\">How to decide which option is right for you<\/h3>\n\n\n\n<p>So, you know you don\u2019t want to have a monthly payment, but you still want to be able to tap the equity you\u2019ve built. Here are some questions to help you choose an option that suits your situation.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>How long do you plan to stay in the home? <\/strong>If you plan to stay in the home a long time (years or even decades), a home equity agreement or reverse mortgage might be the right choice. With those options, you can gain access to your equity and remain in your home for a long time to come.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Do you already have a mortgage on the home? <\/strong>Some equity options can be used in addition to a first mortgage. For instance, you can get an HEA even if you already have a home loan. Similarly, you may be able to get a reverse mortgage even with a mortgage already in place; when you sell the home, the proceeds will be used to pay off both mortgages. To do a sale-leaseback, you would use the proceeds of the sale to pay off the mortgage before using the rest of the funds as you like.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>How comfortable are you with sharing ownership? <\/strong>If you\u2019re open to the idea, then a co-ownership arrangement could be a good fit. With an HEA, you\u2019d still own the home, but you\u2019d give a share of the proceeds to the home equity company later, <a href=\"https:\/\/www.unlock.com\/blog\/hea\/understanding-your-home-equity-agreement-hea-obligations\/\" target=\"_blank\" rel=\"noreferrer noopener\">when you sell or otherwise settle<\/a> the agreement.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>How much money would you like to take out? <\/strong>Different options have different limits to the <a href=\"https:\/\/www.unlock.com\/blog\/home-equity\/how-to-calculate-your-home-equity\/\" target=\"_blank\" rel=\"noreferrer noopener\">amount of equity<\/a> you can access. For instance, with a reverse mortgage, you might be limited to 40% to 60% of your total equity. Home equity agreements are often available for anywhere between $15000 and $500,000. With co-ownership, the amount of money you can get will depend on your agreement with the co-owner. And with a sale-leaseback, you can get up to 100% of your home equity.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>How do you feel about paying interest? <\/strong>A reverse mortgage will carry interest charges, which <a href=\"https:\/\/www.unlock.com\/blog\/home-equity\/understanding-how-to-pay-back-home-equity\/\" target=\"_blank\" rel=\"noreferrer noopener\">you\u2019ll need to repay<\/a>.\u00a0Reverse mortgages\u00a0are available with both fixed and variable interest rates. HEAs aren\u2019t loans, so you don\u2019t pay interest charges monthly. The same goes for a sale-leaseback or co-ownership agreement.\u00a0<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"gb-headline gb-headline-98741fe3 gb-headline-text\">Conclusion <\/h3>\n\n\n\n<p>As a homeowner, your home equity could be a major source of funds. There are plenty of ways to tap into that equity, but if you want to do so without monthly payments, consider your options carefully before choosing the right fit for your situation. &nbsp;<\/p>\n\n\n<section class=\"cta-button-block\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col-12\">\n\t\t\t\t<p>See how much you prequalify for in less than a minute.<\/p>\n\t\t\t\t<a href=\"https:\/\/app2.unlock.com\/\" target=\"_blank\" class=\"un-btn un-btn_blue\">Get Started<\/a>\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Want to access your home equity, but hoping to avoid making monthly payments? We review the options and how to decide which one might be right for you. <\/p>\n","protected":false},"author":6,"featured_media":2950,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-equity"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/posts\/2949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/comments?post=2949"}],"version-history":[{"count":0,"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/posts\/2949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/media\/2950"}],"wp:attachment":[{"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/media?parent=2949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/categories?post=2949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.unlock.com\/wp-json\/wp\/v2\/tags?post=2949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}