Home Equity Options
Home equity options can include a HELOC, home equity loan, cash-out refinance, reverse mortgage, sale, downsizing, or no-loan plan depending on age, income, equity, repayment ability, and goals.
Before you decide
- The home is collateral for most equity borrowing options.
- Repayment ability matters for HELOCs, home equity loans, and cash-out refinances.
- Older homeowners should compare reverse mortgage options only after reviewing fit and obligations.
Start With The Problem
The right equity option depends on the household problem. A repair, debt reset, income gap, existing mortgage payment, family transition, or emergency reserve may each point to a different answer.
Compare The Tradeoffs
Compare required payments, rate risk, closing costs, future flexibility, tax and legal questions, effect on heirs, and how long the homeowner expects to remain in the home.
No-Loan Options Count
Sometimes the best option is to wait, reduce expenses, sell, downsize, seek benefits counseling, or use non-mortgage resources.
Keep reading
A HELOC is a home-equity line of credit that can provide flexible access to equity, but borrowers must understand qualification, payment changes, draw periods, repayment periods, and lien risk.
HELOC vs Home Equity LoanA HELOC is a reusable line of credit, while a home equity loan usually provides a lump sum; both are secured by the home and require repayment.
Cash-Out RefinanceA cash-out refinance replaces the existing mortgage with a new mortgage that is larger than the payoff amount, allowing the borrower to receive some equity as cash if eligible.
Reverse Mortgage vs HELOCA HELOC may fit borrowers who can qualify for and manage required payments, while a reverse mortgage may fit eligible older homeowners who need a different cash-flow structure and plan to remain in the home.
Where this information comes from
Consumer Financial Protection Bureau - regulator
https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-line-of-credit-heloc-en-107/Consumer Financial Protection Bureau - regulator
https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-home-equity-loan-and-a-home-equity-line-of-credit-heloc-en-247/Consumer Financial Protection Bureau - regulator
https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/Fannie Mae - agency
https://guide-selling.fanniemae.com/sel/b2-1.3-03/cash-out-refinance-transactionsReviewed by Nick Cunningham, NMLS #907393. Last reviewed 2026-06-07.
Educational information only. Not personal financial, legal, tax, or benefits advice.