Which home equity option is right for you?
Your home equity — the gap between what your house is worth and what you owe — is often your largest source of borrowing power. There are three common ways to tap it, and the right one depends on your age, how much you need, and whether you want a lump sum or flexibility.
- Reverse mortgage — for homeowners 62+. Converts equity to cash with no required monthly mortgage payment; repaid when you sell or move.
- Cash-out refinance — replaces your mortgage with a bigger one and pays you the difference as a lump sum at one fixed payment.
- Home equity line of credit — keeps your current mortgage and adds a flexible line of credit you draw from only when you need it.
Every estimate here is calculated in your browser using standard industry formulas. We don't ask for your name, email, or phone number, and we don't sell your information.
HELOC vs. cash-out refinance vs. reverse mortgage
| Option | How you get the cash | Monthly payment | Age | Best for |
|---|---|---|---|---|
| HELOC | Revolving credit line you draw as needed | Interest-only, then rises in repayment | Any | Flexible, on-demand access |
| Home equity loan | One fixed lump sum | Fixed second payment | Any | One known expense; keeps a low rate |
| Cash-out refinance | Lump sum; replaces your mortgage | One new fixed payment | Any | A single large need + rate reset |
| Reverse mortgage (HECM) | Lump sum, line, or monthly draws | None required | 62+ | Seniors who want no monthly payment |
Home equity: frequently asked questions
What is home equity?
Your home's current market value minus everything you still owe against it. A $400,000 home with a $250,000 balance = $150,000 in equity — the share you actually own.
How much of my home equity can I borrow?
Usually up to an 80–85% combined loan-to-value across all loans. On a $400,000 home that's about $320,000–$340,000 total; subtract what you already owe to find the cash you can access.
Which is better: a HELOC, cash-out refinance, or reverse mortgage?
It depends on your age and needs. A HELOC is flexible, draw-as-needed at a variable rate; a cash-out refinance is one fixed-rate lump sum that replaces your mortgage; a reverse mortgage suits homeowners 62+ who want cash with no required monthly payment.
Do these calculators require my personal information?
No. Everything runs in your browser — no name, email, or phone, and nothing you type is sent to a server or sold.
How accurate are these estimates?
They use the same standard formulas lenders use, so they're reliable for planning — but they're estimates, not loan offers. Confirm exact figures with a licensed lender.