Menu
HOME EQUITY
Understand the ways homeowners may access equity.
Equity is the difference between a home’s current value and the debt secured by it. Accessing it creates new debt secured by the home, so the structure matters.
OptionHow it worksPayment structureRate structure
Home-equity loan
A separate second mortgage that generally provides a lump sum.
Typically a separate payment; structure depends on the approved loan.
Often fixed, depending on the product.
Cash-out refinance
Replaces the first mortgage with a larger new mortgage.
One new first-mortgage payment.
The entire first-mortgage balance receives new terms.
HELOC
A revolving line of credit secured by the home.
Varies based on draws and the repayment period.
Frequently variable.
Litehouse can explain common equity-access structures, but a specific product may not be available through every lender or for every property or borrower.
Start a conversation →