Ways to access your home equity (and when to use each)

Home equity is the value of your home minus your mortgage balance. You can access it through five main options: home equity loan, home equity line of credit (HELOC), cash-out refinance, reverse mortgage, and home equity investment. Each has pros and cons, with varying payment structures and eligibility requirements like credit score, debt-to-income ratio, and minimum equity. Borrowing risks include losing your home if you default. Closing costs typically range from 2% to 5%. Alternatives include personal loans, lines of credit, and credit cards.