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As the home equity market continues to heat up, Better Home & Finance Holding Co. announced on Wednesday that its home equity line of credit (HELOC) product has collectively helped customers pay off more than $193 million in debt.
Better said that its HELOC product has enabled nearly 50% of borrowers to consolidate debt —primarily high-interest revolving credit, personal loans and installment payments. This has resulted in an average monthly savings of $1,120 for those who achieved positive cash flow.
In a press release, the company said the most commonly paid-off debts included revolving credit (32%), installment loans (27%) and credit lines (26%).
“Better has built an AI-native and end-to-end mortgage origination platform to add value to the definition of homeownership by delivering home-equity decisions in as little as a day,” Vishal Garg, CEO and founder of Better.com, said in a statement.
“Our HELOC borrowers are lowering their required monthly payments by about $1,000 on average; that’s real relief for household budgets. Putting cash back into the hands of homeowners has never been better, faster, and easier than it is with our One Day HELOC.”
In an interview with HousingWire, Better president and chief operating officer Chad Smith said that HELOCs feel like “the right product for the right time.”
“At a high level, you know, this product’s been fairly dormant since the great financial crisis, where it was kind of owned by the banks, and so capital markets have opened up and created opportunities, and we’ve kind of run at that,” Smith said.
Better reported $80 million in monthly HELOC and home equity loan originations as of the second quarter of 2025 — a 38% increase from its $60 million monthly run rate announced in February.
“If you kind of look at that at $80 million a month, that’s nearly a quarter billion a quarter. We’re approaching a billion-[dollar] run rate. We see consumer demand not waning,” Smith said.
“We are one of the few mortgage companies in the U.S. with a full-scale tech stack in one place, all in one flow,” Garg added. “That foundation lets us keep improving speed and accuracy for customers using home equity.”
Smith hopes that the likely September rate cut from the Federal Reserve will encourage continued interest in home equity lending products.
“If the Fed cuts, given the example of 25 basis points, prime historically has traded three points ahead of that, so prime would come down a quarter and people’s HELOC payments would get cheaper,” he said.
“My view is that the 25 basis points are already priced in,” Smith added. “You’ve seen some drops in the 30-year fixed rate. I think the bond market’s very efficient; if there are future rate cuts over the next couple of meetings, some of that’s already priced in … but people with good technology like us are in a good spot and can scale quickly for refinances.
“But I do think that the amount of capital that’s flowing into the home equity and capital markets just keeps opening up, which gives the opportunity for new product features, new liquidity partners, etc.”
