Home Equity Loans vs. Cash-Out Refinancing

Jul 16, 2025

One of the major financial advantages of homeownership is the ability to build equity over time. As you pay down your mortgage and your home’s value increases, you accumulate equity. This is the difference between your home’s value and what you still owe on your mortgage. Equity can be a powerful financial tool, especially when you need access to cash for things like home improvement projects, debt consolidation, major purchases, emergencies, medical costs, or educational expenses.