Calculate your available home equity and explore loan options based on current property value. Compare home equity loans, HELOCs, and cash-out refinancing to access your home's equity.
Home Equity Financing Options
Three main ways to access your home's equity:
- Home Equity Loan: Fixed rate, fixed payment, lump sum distribution
- HELOC: Variable rate, flexible access, interest-only draw period
- Cash-Out Refinance: New first mortgage, potentially better rate, higher loan limits
Home Equity Loan vs HELOC
Home Equity Loan: Best for one-time expenses with predictable costs.
HELOC: Best for ongoing projects or uncertain expense timing.
Cash-Out Refinance: Best when refinancing improves your first mortgage terms.
Important Considerations
Before accessing home equity:
- Your home serves as collateral - risk of foreclosure if you can't pay
- Interest may be tax-deductible if used for home improvements
- Closing costs typically 2-5% of loan amount
- Consider your job security and income stability
- Avoid using equity for consumer purchases or vacations
- Maintain some equity buffer for market fluctuations