The bottom line A $100,000 home equity loan, for many homeowners, could be preferable to a $100,000 cash-out refinance right now. But a loan isn't the only way to borrow equity.

Cash-out refinance: When comparing a home equity loan vs. a cash-out refinance, you’ll see how you receive the funds is similar. You receive the funds in one lump sum to use how you want.

If you go with a cash-out refinance, lenders typically require you to maintain 20% of your home’s equity, or $60,000 in this case, so you’d be able to cash out up to $140,000 to use toward ...

A $100,000 home equity loan has one major advantage over a $100,000 cash-out refinance right now. Getty Images It's not simple to secure a credit card line worth six figures.

If you take out a new loan for $240,000, you can access up to $90,000 in home equity. The benefit of a cash-out refinance is that you don’t have to take out a second mortgage on your home.

The key number to remember with a cash-out refinance is an 80% loan-to-value ratio since that's the loan limit set by Fannie Mae and Freddie Mac. In other words, you can borrow up to 80% of your ...

If you refinance your home with a new loan amount of $320,000, you’ll get to keep the $120,000 difference between your new and old mortgage (minus closing costs and fees).

Both a cash-out refinance and a home equity loan can help you utilize built-up equity for any financing need. How much you can borrow depends on how much equity you have and your creditworthiness.

A cash-out refinance also lets you turn a non-VA loan into a VA-backed loan. Unlike a second mortgage, which adds another lien to your property, a VA cash-out refinance combines everything into ...

The Federal Housing Administration (FHA) cash-out refinance loan allows you to refinance your mortgage, typically at a lower interest rate, and pull out up to 80% of the equity that you have in ...

Cash-Out Refinance vs. Home Equity Loan: An Overview A cash-out refinance pays off your old mortgage in exchange for a new one, ideally at a lower interest rate than your current mortgage.