How to Pull Equity Out of Your Home

If you own a home, you can use the equity in your home to get cash. Equity is the difference between what your house is worth and the amount you still owe on your mortgage loan. There are several different methods you can use to extract this equity from your home, such as borrowing against it, selling it, or doing a cash-out refinance. Let’s dive deeper into each of these options. 

Borrow Against Your Equity 

The most straightforward way to pull equity out of your home is to borrow against it by taking out a second mortgage or home equity line of credit (HELOC). A second mortgage is basically a loan that you take out on top of the first mortgage that you have on your home. With a HELOC, you can draw funds up to an approved limit whenever you need them. In either case, interest rates tend to be lower than other types of loans due to the collateral securing them.

Sell Your Home 

If you want to take all the equity out of your home at once rather than over time, selling it might be the better option for you. When selling a property traditionally, it may take some time before escrow closes and you receive all the money due to you after closing costs are taken out. However, if you sell for cash this process happens much faster as there are no third-party lenders involved in the transaction who need time for approval and processing paperwork. Selling for cash helps you pull equity out much faster than a traditional sale. 

Cash-Out Refinancing 

Another way to access the equity in your home is through a cash-out refinance loan. This type of loan pays off both mortgages and any other liens on your property—including existing HELOCs—and also provides extra cash so that homeowners have access to funds when they need them. The new loan replaces both old loans and increases the total amount owed; however, since interest rates are likely lower thanks to current market conditions, homeowners could potentially save money with this option in spite of owing more overall than before refinancing their mortgage loan(s).


Pulling equity out of your home can be an effective way to generate some extra capital quickly without having to borrow from traditional lenders or dip into savings accounts. Whether it’s done through borrowing against it, selling it outright for cash, or doing a cash-out refinance depends mainly on individual goals and circumstances; however, regardless of which option best suits one’s needs and situation, one should always consider consulting with their financial advisor before making any decisions about their finances or investments. It’s important that everyone understands how each method works so they can make informed decisions when considering whether or not this type of investment strategy makes sense for them financially speaking. Doing thorough research will help ensure they make smart decisions when accessing their hard-earned wealth!

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