Use equity without guessing at the tradeoffs.
Estimate available equity
Adjust your home value and current mortgage balance.
- Total home equity
- $300,000
- Estimated accessible equity
- $175,000
Three ways to use home equity.
Compare how the money arrives, which lien changes, and how the payment may behave.
| Compare | HELOAN/Second Mortgage | Cash-Out Refinance | HELOC |
|---|---|---|---|
| How It Works | Receive a lump sum through a second mortgage while keeping your current first mortgage. | Replace your first mortgage with a larger loan and receive the difference as cash at closing. | Open a revolving second mortgage that lets you borrow, repay, and draw again during the draw period. |
| Payment Structure | Make a separate monthly payment alongside your current mortgage payment. | Make one new mortgage payment based on the new balance, rate, and term. | Make a separate payment that can change with your balance and market rates. |
| Benefit | Borrow a predictable lump sum without changing the terms of your first mortgage. | Combine the equity you borrow and your existing mortgage into one loan payment. | Access funds as needed and pay interest only on the amount you borrow. |
| Rate Type | Usually fixed. | Fixed or adjustable, depending on the mortgage you select. | Usually variable. |
Let us help you explore your home equity options.
Book a meeting, call, or email us to discuss your next step.
Book a 15-minute meeting
Choose a convenient time for a Google Meet with a LoanTree advisor.