Is Your Home Loan Setup Still Working for You?

The start of a new year is a natural time to pause and take stock. Many people review goals, health routines, and budgets. Your home financing deserves the same annual checkup.

If you own a home, especially if you have more than one loan tied to it, a quick review can reveal opportunities to simplify, reduce uncertainty, or improve cash flow.

A Common Setup We See

Many homeowners today have:

• A primary mortgage

• A home equity line of credit, or HELOC

  
  

This strategy made sense for years. Rates were low, equity was growing, and HELOCs provided flexibility. But as interest rates have changed, the cost of carrying multiple loans has changed too.

Understanding Your Blended Rate

When you have a mortgage and a HELOC, you do not have one interest rate. You have a blended rate, which is the weighted average of all home related loans.

Because HELOCs are typically variable, their rates have increased quickly. In many cases, homeowners are surprised to learn their blended rate is much higher than expected, even if their original mortgage rate is low.

This matters because your blended rate directly affects:

• Monthly cash flow

• Total interest paid over time

• Financial predictability

  
  

Why an Annual Checkup Matters

An annual home loan review is not about reacting to headlines or chasing the lowest advertised rate. It is about alignment.

A financial checkup helps answer important questions:

• Does my current loan setup still fit my goals?

• Am I comfortable with variable rate exposure?

• Is my HELOC still serving its original purpose?

• Would simplifying my loans reduce stress or improve planning?

  
  

Sometimes the best answer is to keep everything exactly as it is. Other times, a small adjustment can make a meaningful difference.

When Consolidation May Be Worth Exploring

In some situations, consolidating a mortgage and HELOC into a single loan can provide benefits such as:

• One monthly payment instead of two

• A fixed rate rather than a variable HELOC

• A clear payoff timeline

• Easier budgeting and long term planning

  
  

Consolidation is not right for everyone, but it is often worth evaluating as part of an annual review.

A Simple First Step

For your annual financial checkup, gather:

• Your most recent mortgage statement

• Your most recent HELOC statement

  
  

Note the balances, interest rates, and payments. Seeing everything together often brings immediate clarity.

Start the Year With Confidence

Your home is one of your largest financial commitments. Taking a few minutes each year to review how it is financed can help ensure it continues to support your life, your goals, and your peace of mind.

If you would like a second set of eyes on your home loan setup, the Blue Stripe Mortgage team is happy to help. Visit BlueStripeMortgage.com or contact us to schedule a quick annual financial checkup.

Wishing you a happy and healthy new year from Blue Stripe Mortgage.