How to Get Equity Out of Your Home Without Refinancing

Need cash but don’t want to mess with your current mortgage? You’re not alone.

Many homeowners want to tap into their home equity but avoid the hassle of refinancing. Maybe your current interest rate is great. Maybe you just don’t want to restart the loan process or deal with all the paperwork.

The good news? You don’t have to refinance to get money from your home. There are several other ways—and we’ll walk you through them in simple terms.

What Is Home Equity?

Let’s start with the basics.

Home equity is the difference between your home’s value and what you still owe on your mortgage.

Let’s say:

• Your home is worth $400,000

• You still owe $250,000

That means you have $150,000 in equity—and you can use some of it, if needed.

 Home Equity Loan

This is a second loan that uses your house as collateral. You keep your current mortgage and take out a new loan for a lump sum.

Why choose this?

• Fixed interest rate

• Set monthly payments

• Great for one-time big expenses like renovations or debt consolidation

Just remember: you’re taking on more debt, so be sure the payment fits your budget.

HELOC (Home Equity Line of Credit)

A HELOC works like a credit card backed by your home.

You’re approved for a credit limit, and you can borrow from it as needed. You only pay interest on what you actually use.

Pros:

• Flexible access to money

• Interest-only payments during the draw period

• Good for ongoing or unpredictable expenses

Cons:

• Variable interest rate

• Payments can go up over time

Home Equity Investment (HEI)

This is a newer way to get cash without taking on monthly payments.

A company gives you a lump sum today. In return, they get a share of your home’s future value. You repay them later—either when you sell the house or after a set number of years.

Things to know:

• No monthly payments

• You keep living in your home

• You give up a portion of your future home equity

It’s a trade-off—but it can be a good fit if you’re short on monthly cash.

Reverse Mortgage (For Ages 62+)

A reverse mortgage lets seniors get cash from their home without selling or moving. Instead of paying the lender each month, they send you the money. You pay back the loan when you sell your home or after you pass away.

Helpful if you:

• Are retired and need income

• Want to stay in your home

• Don’t want monthly loan payments

It’s not for everyone, so be sure to talk with a licensed reverse mortgage advisor before deciding.

Sale-Leaseback

Here’s how this works:

• You sell your home

• You get a lump sum of cash

• You stay in the home and rent it

This is a good option if you need cash now but aren’t ready to move. Just know—you’ll no longer own the home, and you’ll have rent to pay.

Hard Money Loan

If you’ve been turned down by a traditional bank, this might be your best option.

As trusted hard money loan lenders, we offer short-term loans based on the value of your property—not your credit score. These loans are fast and flexible, often closing in just a few days.

Best for:

• People with poor credit

• Urgent funding needs

• Real estate investors

Hard money loans aren’t for long-term borrowing, but they’re a powerful tool when you need fast access to equity.

How to Pick the Right Option

Here’s a simple chart to help you compare:

OptionMonthly A home equity loan lets you borrow a lump sum and pay it back in fixed monthly amounts. It’s a smart option when you need a large amount of cash upfront, like for renovations or debt.

With a HELOC, you get a credit line and borrow only what you need, when you need it. You usually make interest-only payments at first, which makes it great for flexible or ongoing expenses.

Home equity investments provide cash now without monthly payments. You repay later, usually when you sell the home, making this useful if you’re cash-strapped but want to avoid more debt. For homeowners 62 and older, a reverse mortgage can tap the equity without selling out. You are paid rather than paying, and the loan is repaid when you move out or sell the house.

In a sale-leaseback, you sell your home and stay as a renter. It gives you full access to your equity while letting you remain in your house.

A hard money loan gives you instant funding based on the property’s value, not your credit. It’s helpful when you need money in an urgent situation or banks won’t lend to you.

Final Thoughts

Home equity pay-outs are not necessarily a refinancing concern. If you require a lump sum, easy access to cash, or no payments—there is a solution for you

It all depends on your goals, your budget, and how soon you need the money.

Still figuring things out? Our guide on Is Hard Money Loan Right for You? can help you decide if that route makes sense.