Ryan McVay/Getty Images
How should I tap my equity?
There are three ways to take advantage of your home's equity:
- A home equity line of credit -- HELOC, for short
- A home equity loan
- A cash-out mortgage refinance
HELOCs tend to have variable rates that are low initially but can rise over time. Home equity loans usually have fixed rates and five- to 15-year payback periods. Cash-out refis can have variable, fixed or hybrid rates (fixed, then variable) with terms of 15 or 30 years.
RATE SEARCH: Bankrate helps you find the best mortgage rates.