Home Equity for Homeowners

Learn what home equity is, whose value lenders use, how LTV and combined LTV work, why you can't borrow all of your equity, and how to do the math on how much you might be able to borrow.

A home equity loan is a second mortgage paid out as one lump sum, usually with a fixed payment. Learn how much you can get, how to compare terms, the costs and disclosures, prepayment penalty limits, and the risks.

A HELOC is a credit line backed by your home. Learn the draw and repayment periods, how variable rates and the lifetime cap work, why the payment can jump, which fees to check, when a lender can freeze your line, and which disclosures you get.

A cash-out refinance replaces your mortgage with a bigger one and pays you the difference. Learn the 2026 limits for conventional, FHA, and VA loans, the closing costs and fees, and how to compare it with keeping a low rate and adding a second loan.

Learn four ways to save money with your home without borrowing more: canceling PMI under the Homeowners Protection Act or on today's value, FHA mortgage insurance rules, refinancing with a break-even test and FHA or VA streamlines, recasting, and lowering property taxes.

Learn how FHA-insured reverse mortgages (HECMs) work for homeowners 62 and older: counseling, payout choices, the 2026 limit and costs, what you still must pay, when the loan comes due, heirs' options, protections for a younger spouse, and red flags.

Learn how home equity agreements and sale-leasebacks work, what they can really cost, what the CFPB found, and safer options to compare before you trade away part of your home's value.

Learn what lenders check before you tap your equity: credit score floors and lender overlays, debt-to-income limits by program, combined loan-to-value, income history and reserves, occupancy and property type, and recent payment history.

Learn where to apply for a home equity loan, HELOC, or cash-out refinance, how brokers are paid, and how to compare offers without getting fooled by the rate. It also covers how shopping affects your credit and the red flags to walk away from.

See the documents lenders commonly ask for when you borrow against your home, and each step from application to funding. Learn how the three-business-day right to cancel works and why the money doesn't arrive at the closing table.

Learn how long you may have to wait before tapping your home's equity with a conventional, FHA, or VA cash-out refinance, a HELOC, or a home equity loan. It also covers key exceptions and the rule for homes listed for sale.

Learn which uses of home equity tend to protect your home and which put it at risk, including the math and the trap in debt consolidation. It also explains when home equity interest is tax deductible under the rules for 2026 and later.

Learn to spot foreclosure rescue scams, deed fraud, predatory high-cost loans, and pushy contractor or grant offers. Then see what federal rules require if you fall behind, where to get free help, and a game plan for the whole course.