Put Your Home Equity to Work

The Best Option Depends on What You Want to Accomplish

Home equity can be used in different ways. You may want revolving access to funds, a fixed lump sum, a lower payment, a different loan term, or cash for debt consolidation, renovations, investment, or another financial goal. The right strategy depends on your current mortgage, available equity, credit, income, monthly payment goals, and how long you expect to keep the property.

Explore Home Equity, Refinance and Reverse Mortgage Options

HELOC: A revolving line of credit that allows you to borrow, repay, and reuse available equity during the draw period.

Home Equity Loan: A fixed second mortgage that may provide a lump sum while leaving the existing first mortgage in place.

Cash-Out Refinance: Replaces the current mortgage with a new larger loan and provides eligible equity proceeds at closing.

Rate-and-Term Refinance: May be used to change the interest rate, loan term, or loan structure without taking significant cash out.

Reverse Mortgage: A reverse mortgage may allow eligible older homeowners to access a portion of their home equity while continuing to live in the property, subject to program requirements.

Debt Consolidation: Home equity may be used to consolidate qualifying debts, but the new payment, total interest cost, and long-term strategy should be reviewed carefully.

Compare the Main Options

HELOC: Existing first mortgage stays in place. Revolving access to funds. Variable rate in many programs. Useful when you do not need all funds at once.

Home Equity Loan: Existing first mortgage stays in place. One-time lump sum. Fixed payment in many programs. Useful when the amount needed is known.

Cash-Out Refinance: Replaces the existing first mortgage. One-time lump sum. One combined mortgage payment. Useful when restructuring the first mortgage also makes sense.

• HELOC — Existing first mortgage stays in place
• HELOC — Revolving access to funds
• HELOC — Variable rate in many programs
• HELOC — Useful when you do not need all funds at once
• Home Equity Loan — Existing first mortgage stays in place
• Home Equity Loan — One-time lump sum
• Home Equity Loan — Fixed payment in many programs
• Home Equity Loan — Useful when the amount needed is known
• Cash-Out Refinance — Replaces the existing first mortgage
• Cash-Out Refinance — One-time lump sum
• Cash-Out Refinance — One combined mortgage payment
• Cash-Out Refinance — Useful when restructuring the first mortgage also makes sense

How Homeowners May Use Available Equity

Loan proceeds should be matched to a clear financial goal, repayment plan, and realistic monthly budget.

• Home improvements or repairs
• Debt consolidation
• Major purchases or expenses
• Investment property funding
• Education or business needs
• Emergency reserves or planned expenses

What May Be Reviewed During a Home Equity Consultation

Documentation and available options vary by loan program and property type.

• Current mortgage balance and payment
• Estimated property value
• Available equity
• Credit history
• Income and employment
• Monthly debts
• Requested cash amount
• Intended use of funds
• Preferred monthly payment
• Expected time in the home