Want to pull equity out of your home? Here are your options — and the one that usually wins.
There are three ways to tap your home equity: a home equity loan (HELOAN), a HELOC, or a cash-out refinance. In 2026 most owners with a low first-mortgage rate come out ahead with a home equity loan — a single lump sum at a fixed rate that sits behind the mortgage they already have. No refinancing the whole balance at today's higher rate. No variable line that can climb. I compare all three side by side, in English or Spanish, so you see the real cost before you decide.
Who this is for
- Homeowners who want cash but don't want to give up a low first-mortgage rate
- People who'd rather have a fixed payment than a HELOC's adjustable one
- Anyone with a one-time expense — a remodel, tuition, or paying off high-interest debt
- Borrowers who want the full cost spelled out up front instead of drawing over time
How it works
We compare it to what you asked for
If you came in wanting a HELOC, I put a home equity loan right next to it — fixed versus variable, lump sum versus a line you draw on. You see why one fits your plan better than the other, with no steering.
Size the loan to your equity
We start with your home's value and what you still owe. Most lenders let your first and second loans together reach about 80–85% of the value, and that gap sets how much you can borrow.
Lock a fixed rate
You get one rate and one payment for the life of the loan. I shop it across lenders so the rate and the closing costs stay competitive.
Close and get your funds
Your first mortgage stays exactly where it is. The home equity loan closes as a second lien, and the lump sum reaches you after closing.
A rate that can't climb
The rate is fixed for the whole term, so your payment is the same the first month and the last — unlike a HELOC that can rise with the market.
Your first mortgage stays put
If you locked a low rate years ago, you keep it. The home equity loan sits behind it as a second, instead of replacing it.
Cash up front, cost known
You get the full amount at closing and know the exact payment and payoff date — no drawing over time and watching the balance drift.
Compared honestly, not sold
I walk you through HELOAN versus cash-out refinance versus a line of credit and tell you which actually fits — even when it's the one that pays me less.
Today's sample home equity loan rates
Common questions
How do I pull equity out of my home?
There are three main ways: a home equity loan (HELOAN), a HELOC, or a cash-out refinance. A home equity loan gives you a single lump sum at a fixed rate and leaves your existing first mortgage completely alone — which is usually the right call in 2026 if you locked a low rate you don't want to give up. A HELOC works like a revolving credit line against your home's value, with a variable rate that can rise. A cash-out refinance replaces your entire mortgage with a larger one at today's rate and hands you the difference. I lay all three out side by side so you can see which one actually costs less for your situation.
Is a home equity loan the same as borrowing against my house?
Yes — it's a loan secured by the equity in your home. You receive one fixed lump sum at a fixed rate, the loan sits behind your existing mortgage as a second lien, and your first mortgage and its rate stay exactly as they are. People search for it under many names, but the structure is the same.
What's the difference between a HELOC and a home equity loan?
A HELOC is a revolving line of credit with a variable rate — you draw what you need over time and the rate can move up or down. A home equity loan (HELOAN) hands you one lump sum at a fixed rate with a fixed payment. If you have a specific amount in mind and want a payment that never changes, the HELOAN is usually the calmer choice.
Do you offer HELOCs?
I focus on home equity loans, which lock your rate and payment. Plenty of people call asking for a HELOC, and once we compare the two, most prefer the certainty of a HELOAN. If a line of credit is genuinely the better fit for you, I'll tell you straight rather than push a product.
Will this change my first mortgage or its rate?
No. A home equity loan is a second loan that sits behind your current mortgage, so the low rate you already have stays exactly the same. That's the main reason people pick it over a cash-out refinance when rates today are higher than what they're paying.
How much can I borrow?
Most lenders let your first mortgage and the new home equity loan together reach roughly 80–85% of your home's value. On a $600,000 home with a $300,000 balance, that's often somewhere around $180,000–$210,000 before costs — the exact number depends on the appraisal, your credit, and the program.
Home equity loan or cash-out refinance — which is better?
It comes down to your current rate. If your first-mortgage rate is low, a home equity loan lets you keep it and borrow on top. If a cash-out refinance gets you a comparable rate on the whole balance, folding everything into one payment can be simpler. I run both side by side so the choice is clear.
What can I use the money for?
Whatever you decide — a remodel, tuition, medical bills, or clearing high-interest credit cards. Using it for value-adding repairs or to retire more expensive debt tends to make the most sense.