As you repay your mortgage, you will gradually build up equity in your home. You can borrow against that equity when you need cash, using either a loan or a line of credit.

Home equity loans give you the cash you need as a single up-front payment, which you can repay at a fixed rate. If you know exactly how much you need to borrow, a home equity loan may be the best option.

Home equity credit lines give you a revolving source of cash that you can draw from as you need to, up to a maximum amount. The line carries a variable rate with an interest-only option, and you pay interest only on what you actually use — not the total amount of the credit line.