What we do
Homeowner Wise is an information website. We don't lend money or invest in homes. If one of the options we explain sounds right for you, we can point you to a company that offers it. You decide whether to go ahead, and there's no obligation.
Four ways to turn home equity into cash
Home equity line of credit (HELOC)
A credit line secured by your home. You borrow what you need and make monthly payments, usually at a variable interest rate.
Home equity loan
A second loan for a fixed amount, repaid in fixed monthly payments on top of your mortgage.
Cash-out refinance
A new, larger mortgage that replaces your current one and pays you the difference in cash. Your old interest rate goes away with the old loan.
Home equity investment (HEI)
Cash now from an investor, with no monthly payments, in exchange for an agreed share of what your home is worth later. It is not a loan.
What to know first
- Every one of these uses your home as security. Read the agreement before you sign.
- Each has fees and closing costs, and the amounts depend on your home, credit and state.
- Not every option is offered in every state.
- For advice about your own situation, talk to a financial or tax professional.