Short answer
The main home-equity choices are usually a HELOC, home equity loan, or cash-out refinance. The better fit depends on whether you need flexible draws or a lump sum, whether you want to keep your current mortgage, rate type, fees, repayment plan, and comfort using the home as collateral.
Decision table
| Structure | Collateral | Rate type | Access to funds | Payment characteristics | Common considerations |
|---|---|---|---|---|---|
| HELOC | Home-secured | Often variable; fixed features may exist. | Draw as needed during draw period, subject to terms. | Can change by balance, rate, and phase. | Flexible, but variable-rate and collateral risk matter. |
| Home equity loan | Home-secured | Often fixed, but terms vary. | Lump sum. | Structured repayment is common. | Useful for known one-time costs. |
| Cash-out refinance | Home-secured first mortgage | Depends on new mortgage. | Lump sum at closing. | Replaces the existing mortgage payment structure. | Can change the first mortgage rate and term. |
| Personal loan | Usually unsecured | Often fixed, but terms vary. | Lump sum. | Installment payments are common. | May avoid home collateral for smaller needs. |
Sources
Direct answer
The main home-equity options are a HELOC, a home equity loan, and a cash-out refinance. Compare whether you need flexible draws or a lump sum, whether you want to keep your first mortgage, and how each choice affects collateral, fees, payments, and total cost.
Reviewed October 3, 2026. This page was materially reviewed for answer clarity, methodology, source support, and internal links. Option guidance now ties product choice to funding style, collateral, and repayment tradeoffs.
HELOC options
A HELOC may provide a revolving line of credit for flexible borrowing needs. Homeowners may draw funds during a draw period, subject to partner rules, and repay based on the product terms.
Home equity loans
A home equity loan may provide a lump-sum amount with structured repayment. This can work better for a known one-time expense where the total amount is clear upfront.
Cash-out refinance
A cash-out refinance may replace an existing mortgage with a new mortgage for a larger amount. It can be useful for some homeowners, but it may change the first mortgage rate and term.
Personal loan alternatives
Some homeowners compare unsecured personal loans for smaller projects or when they do not want to use the home as collateral. Rates and limits can differ significantly.
How to compare options
Review funding style, APR, fees, repayment term, payment stability, whether collateral is required, and how quickly funds may be needed.
| Option | Common structure | Useful for |
|---|---|---|
| HELOC | Line of credit | Flexible or ongoing expenses. |
| Home equity loan | Lump sum | Known one-time cost. |
| Cash-out refinance | New first mortgage | Replacing mortgage while accessing cash. |
| Personal loan | Unsecured installment loan | Smaller needs without home collateral. |
Methodology: compare options by funding style, collateral, first-mortgage impact, rate/payment variability, upfront costs, and total repayment risk. Borrow Home Equity is not a lender and does not set product terms.
Marketplace review
Borrow Home Equity helps you submit one secure request that may be reviewed by participating partners. Borrow Home Equity does not approve or fund loans.
Authoritative references
Frequently Asked Questions
What is the main difference between a HELOC and home equity loan?
A HELOC is commonly a line of credit, while a home equity loan is commonly a lump-sum loan.
Is Borrow Home Equity a lender?
No. Borrow Home Equity is a marketplace-style website and is not a lender.
Can I compare options with no obligation?
Submitting a request does not obligate you to accept an offer.