Your home is more than just a place to live; it's a powerful financial asset. If you need access to cash, there are several ways to tap into your home's value without selling it. In this guide, we'll walk you through all the major loan-based options, how they work, and who qualifies.
We'll also help you understand which option fits your personal situation — whether you need flexible funds, lump-sum cash, or minimal monthly payments.
"Your home isn't just where you live — it's a key that can unlock your financial freedom when used wisely."
Before jumping into details, we’ve created this quick chart to help keep track of 9 popular methods.
A HELOC gives you a revolving line of credit based on your home's equity, similar to a credit card. You can borrow as needed during the draw period, paying interest only on what you use. After the draw period, you must start repaying principal plus interest. This option offers flexibility but comes with variable interest rates that can rise over time.
A home equity loan provides a lump sum of cash upfront, repaid in fixed monthly installments over a set term. It offers predictable payments, making it easier to budget, but lacks the flexibility of a HELOC.
In a cash-out refinance, you replace your current mortgage with a new, larger one, taking the difference in cash. It can be a good option if today's mortgage rates are lower than what you're currently paying, but it resets your mortgage clock and often involves significant closing costs.
A reverse mortgage lets seniors convert home equity into tax-free cash without monthly payments. The loan balance grows over time and is repaid when you move out, sell the home, or pass away. It's a valuable tool for retirees but comes with higher fees and the risk of depleting home equity.
An HEA offers cash today in exchange for a share of your home's future appreciation. Unlike loans, there are no monthly payments or interest. You settle the agreement when you sell your home or after a set term.
A Shared Appreciation Mortgage allows you to borrow against your home in exchange for sharing a portion of its future value. Payments are often deferred or minimized, making this attractive for cash-strapped homeowners who anticipate property appreciation.
Hard money loans are fast, asset-based financing solutions ideal for homeowners who may not qualify for traditional loans. They carry high interest rates and short terms, making them better suited for temporary needs.
Bridge loans help homeowners "bridge" the gap between buying a new home and selling their current one. They are short-term, often interest-only loans that must be repaid quickly.
PACE loans finance energy-efficient upgrades and are repaid through your property tax bill. While they don't offer direct cash, they can free up money you'd otherwise need for improvements.
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Tapping into your home's equity can be a smart way to access cash, but each option comes with different costs, risks, and requirements. The right choice depends on your goals—whether you need a flexible line of credit, a predictable monthly payment, or a creative alternative with no monthly obligations.
Need help choosing the best option for you?
Speak to a member of our team at Really Estate. We'll help you understand your options, compare offers, and find the right solution for your financial goals—all without pressure or confusing industry jargon.
