How to Get Cash from Your Home: 3 Options Explained

Life happens. Whether it’s home improvements, paying off debt, or covering big expenses, sometimes you need access to extra cash. The good news? As a homeowner, you may already be sitting on a powerful resource your home’s equity.

Here are three of the most common ways to turn that equity (or credit) into cash, and what you should know about each.

1. Home Equity Loan

A home equity loan is often called a “second mortgage.”

• You borrow a fixed amount of money based on the equity in your home.

• You repay it with a fixed interest rate and set monthly payments.

• Because it’s separate from your main mortgage, your current home loan doesn’t change.

*Best for homeowners who want a lump sum with predictable payments.

2. Cash-Out Refinance

With a cash-out refinance, you replace your current mortgage with a new one that’s larger than what you owe — and pocket the difference as cash.

• Works well if current interest rates are lower than your original loan.

• Lets you combine refinancing benefits (like lowering your rate or removing PMI) while also getting extra cash.

• Payments are part of your new mortgage, not a separate loan.

*Best if you want to refinance anyway and also need access to cash.

3. Personal Loan

Unlike the first two options, a personal loan doesn’t involve your home’s equity.

• Usually has a higher interest rate than mortgage-related loans.

• Can be approved quickly, making it good for short-term needs.

• Doesn’t put your house at risk if you default — but payments may be higher.

*Best if you don’t want to touch your mortgage or home equity.

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Which Option Is Right for You?

The answer depends on your goals:

• Need a lump sum with fixed payments? A home equity loan may work.

• Want to lower your rate and get cash? A cash-out refinance could be the best fit.

• Need fast money without touching your home loan? A personal loan might do the trick.

We can help you compare your options and choose the one that saves them the most in the long run. Just click below and claim your FREE CONSULTATION with our mortgage expert.