4 Ways to Get Equity Out of Your Home Without Refinancing

Refinancing lets you access your home’s equity by replacing your current mortgage with a new one—but it isn’t your only option.

You can take equity out of your home without refinancing. There are four main options to access cash without changing your existing mortgage:

1. Home equity line of credit (HELOC)
2. Home equity loan
3. Home equity agreement (HEA)
4. Home sale-leaseback

Here’s a closer look at how each option turns your home’s value into usable funds—and the key risks and benefits to consider.

Table of Contents

1. Home equity line of credit (HELOC)
   1. Do you have to refinance for a HELOC?
   2. HELOC vs. refinancing
   3. Pros and cons
   4. Where to get one
      1. Figure
      2. Aven
2. Home equity loan
   1. Can you get a home equity loan without refinancing?
   2. Home equity loan vs. refinancing
   3. Pros and cons
   4. Where to get one
      1. LendingTree
3. Home equity agreement
   1. How HEA works to pull out equity without refinancing
   2. HEA vs. refinancing
   3. Pros and cons
   4. Where to get one
      1. Hometap
4. Home sale-leaseback
   1. How sale-leaseback allows you to access home equity without a loan
   2. Home sale-lease back vs. refinancing
   3. Pros and cons
   4. Where to get one
      1. Truehold
5. Considerations
   1. Taxes
   2. Credit score impact
   3. Market conditions
6. Alternatives
   1. Personal loans
   2. Sell and downsize
   3. Rent out all or part of the property
   4. Government programs and grants
   5. Peer-to-peer lending
7. Recap of home equity lenders without refinancing

Home equity line of credit (HELOC)

• How it works: Revolving credit line with a draw and repayment period
• Who it’s best for: Homeowners with at least 10%–20% equity who want flexible, on-demand access to cash and have a credit score of 620 or higher.

Do you have to refinance for a HELOC?

You don’t have to refinance to get a HELOC. A HELOC is a separate line of credit that works alongside your existing mortgage, allowing you to borrow against your home’s equity without replacing your current loan.

A HELOC functions like a revolving credit line: you can borrow as needed during the draw period (typically 5–10 years) and often make interest-only payments during that time. Once the repayment period begins, you’ll repay the principal and interest over a set term, usually 5–30 years.

HELOC vs. refinancing

Feature	HELOC	Refinancing
Loan type	Line of credit; borrow as needed	New mortgage loan replaces the original loan
Interest rate	Typically variable	Usually fixed (can also be variable)
Monthly payments	Interest-only during draw period; principal later	Fixed principal and interest payments
Closing costs	Lower than refinancing	Higher closing costs
Draw period	Yes (borrow when needed)	N/A (entire amount borrowed upfront)
Best for	Ongoing or unexpected expenses	Locking in a new rate or consolidating debt

Pros and cons

Pros

• Flexibility

  Withdraw cash up to your credit limit whenever you need it during the draw period.

• Use cash for nearly any purpose

  Pay for unexpected expenses, medical bills, major renovations, and more.

• Interest may be tax-deductible

  You may be able to deduct interest on a HELOC from your income taxes.

• Lower interest rates

  You may get a lower interest rate on a HELOC because your home serves as collateral.

Cons

• You could lose your home

  Because your home is collateral, you could lose your home if you default.

• Appraisal required

  You may need an appraisal of your home, which averages $400 to $500.

• Variable rates

  If your interest rate goes up, monthly payments could become unaffordable.

• Taking on more debt

  Borrowing more than you can afford could saddle you with too much debt.

Where to get one

Figure

Best HELOC

4.9 _/5

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HELOC details

Rates (APR)	6.80% – 15.40%
Loan amounts	$20,000 – $750,000
Repayment terms	Draw: 5 years / Repayment: 5, 10, 15, or 20 years

Why it’s one of the best

Figure is a top-rated HELOC due to its speedy approval and funding process. Some HELOC lenders can take weeks to decide and might require you to sign in person, but with Figure, you can complete the application online and get approved in minutes.

• All HELOCs come with a fixed rate
• 100% online application and appraisal
• Get funds in as little as five days
• Redraw up to 100% of your funds
• Check your rate without affecting your credit score
• Figure offers online and video notary support, with an average response time of less than 45 seconds.
• No closing costs 
• Available in most states
• No out-of-pocket costs
• Borrow against a primary home, second home, or investment property

Aven

Best HELOC for Customer Reviews

4.8 _/5

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HELOC details

Rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $250,000
Repayment terms	Draw: 5 years / Repayment: 5, 10, 15, or 30 years

Why it’s one of the best

Aven’s HELOC offers several unique benefits you won’t find with other lenders. It features a fixed interest rate throughout the life of the loan, a Lowest Rate Guarantee, and the ability to check your rate without affecting your credit score. The 100% digital application process allows for approval in as little as 15 minutes.

Aven offers an optional protection program through Securian that will cover your minimum payment for up to six months if you lose your job. With over 3,450 positive Trustpilot reviews, Aven’s customers are fans of the product.

• Lowest Rate Guarantee
• Optional debt protection program through Securian
• Approval in as little as 15 minutes
• 100% digital application process
• Check your rate without affecting your credit score

Home equity loan

• How it works: Loan with fixed monthly payments 
• Who it’s best for: Homeowners who need a large, one-time lump sum for major expenses like renovations, tuition, or debt consolidation.

Can you get a home equity loan without refinancing?

A home equity loan doesn’t require refinancing. Like a HELOC, it’s a second mortgage that lets you access a lump sum of cash while keeping your existing mortgage in place.

A home equity loan provides a one-time payout based on your available equity, which you repay with fixed monthly payments over a set term (usually 5–30 years). Your home serves as collateral, and lenders typically allow borrowing up to around 85% of your home’s value, minus your remaining mortgage balance. Home equity loans usually come with closing costs and fees, similar to a traditional mortgage.

Approval is generally easier if you have at least a 620 credit score, sufficient equity, and a manageable debt-to-income ratio.

Home equity loan vs. refinancing

Feature	Home equity loan	Refinancing
Loan type	Second mortgage; lump sum borrowed	Replaces original mortgage with a new one
Interest rate	Fixed	Fixed or variable
Monthly payments	Fixed payments on both original and new loans	Single payment on new loan
Equity requirement	Must have equity in the home	May not require equity unless cash-out refinance
Lump sum	Lump sum is principal of new loan	Cash lump sum is added to new loan’s principal
Closing costs	Yes (similar to refinancing)	Yes (includes origination and other fees)
Best for	Homeowners needing a one-time lump sum without changing their existing mortgage	Locking in a lower interest rate, changing loan terms, or consolidating debt

Pros and cons

Pros

• Fixed interest rate and consistent payments

  Home equity loans typically have a fixed interest rate and monthly payment amount.

• May be tax-deductible

  You may be able to deduct the interest on a home equity loan on your income taxes.

• Lower interest rates

  Home equity loans often have lower interest rates than other types of loans.

• Longer repayment periods

  Home equity loan repayment periods range from five to 30 years.

• Larger loan amount

  You may qualify for a higher loan amount if you have a significant amount of equity.

Cons

• Risk losing your home

  If you default on a home equity loan, you could lose your home, which is collateral.

• Closing costs

  Home equity loans typically have closing costs of 2% to 5% and origination fees.

• Appraisal fee

  You typically must have your home appraised, which averages $400 to $500.

• Additional debt

  With a home equity loan, you now owe money on something you once owned.

Where to get one

LendingTree

Best Marketplace

4.5 _/5

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Home equity loan details

Rates (APR)	Vary by lender
Loan amounts	$10,000 – $2 million
Repayment terms	Vary by lender

Why it’s one of the best

LendingTree stands out because it lets you compare multiple home equity loan and HELOC offers with one simple form. Instead of applying to each lender individually, you can review rates, terms, and loan amounts side-by-side to find the best match for your needs. This makes it ideal for borrowers who want to shop the market quickly without committing to a single lender upfront.

• Compare home equity loan and HELOC offers from multiple lenders
• One application—easy, fast way to shop rates
• See personalized offers without impacting your credit score
• Wide range of rates, terms, and loan amounts
• Helps you identify the lowest-cost option more efficiently
• Strong educational tools and loan-comparison resources

Home equity agreement

• How it works: Loan from an investor who shares partial equity in your home
• Who it’s best for: Homeowners with lower credit scores who need cash but don’t qualify for a HELOC or home equity loan.

How it works to pull out equity without refinancing

With an HEA, also known as a home equity sharing agreement (HESA) or home equity investment (HEI), you receive a lump-sum cash payment from an investment company in exchange for giving the company the right to share in your home’s future change in value. You don’t make monthly payments during the agreement term, which typically lasts 10 to 30 years.

When the agreement ends—or if you sell your home earlier—you repay the original amount you received plus a percentage of your home’s appreciation. If your home’s value goes down instead of up, the amount you owe is reduced accordingly.

HEA vs. refinancing

Feature	Home equity agreement	Refinancing
Loan type	Not a loan; equity sharing contract	New loan replaces original mortgage
Payments	One lump sum at end based on home appreciation	Monthly principal and interest payments
Interest costs	None	Yes, over the life of the loan
Closing costs	None	Yes
Risk	Amount owed depends on home value changes	Fixed payment schedule regardless of appreciation
Best for	Homeowners looking for cash with no debt	Reducing rate, changing term, or consolidating loans

Pros and cons

Pros

• No monthly payments

  Make only a single payment at the end of the agreement.

• Shared risk

  If your home depreciates, the investment company shares that loss and you owe less.

• Easier to qualify with poor credit

  Even if your credit score is as low as 500, you may still qualify.

• Low income isn’t a barrier

  There are generally no income requirements, so even low-income homeowners may qualify.

• No debt-to-income requirements

  If you have too much debt to qualify for a home equity loan or HELOC, you may still qualify for the agreement.

Cons

• May pay more than expected

  If your home appreciates greatly, you may pay a greater amount.

• Appraisal fees

  Many investment companies require an appraisal on your home.

• Must repay the entire amount at the end

  If you aren’t able to repay the entire amount owed once, you may have to sell your home to make one large payment.

Where to get one

Hometap

Best Home Equity Agreement

4.8 _/5

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HEA details

Funding	$15,000 – $600,000
Term length	10 years
Credit score	500+

Why it’s one of the best

Founded in 2017, Hometap wants to make homeownership less stressful and more accessible. It’s our choice as the best home equity sharing agreement because it can provide a financing solution to homeowners with credit scores as low as 500 in as little as three weeks.

• Excellent customer reviews
• No monthly payments
• Can use funds for any purpose
• Shares in future depreciation
• Lenient financial requirements

Home sale-leaseback

• How it works: Sell your home for accrued equity and rent it from the new owner
• Who it’s best for: Homeowners who need a large amount of cash to stabilize their finances and want to stay in their home while eliminating their mortgage payment.

How it allows you to access home equity without a loan

A home sale-leaseback lets you convert your home’s equity into cash by selling the property to an investor and staying in it as a renter. Because you’re selling the home rather than borrowing against it, you get a lump-sum payout without taking on new debt.

After the sale, you remain in the home under a lease agreement, and the investor takes over responsibilities like major repairs, property taxes, and homeowners insurance. While this frees up cash and removes the burden of ownership costs, your rent may increase over time, and you no longer benefit from future home appreciation.

Home sale-lease back vs. refinancing

Feature	Home sale-leaseback	Refinancing
Loan type	No loan; property sold to an investor	New loan replaces original mortgage
Ownership	Investor owns the home	Homeowner retains ownership
Payments	Lease payments to new owner	Monthly loan payments
Closing costs	May involve property sale fees	Yes (loan origination fees, title insurance, etc.)
Debt	None	Debt created with the new mortgage
Best for	Homeowners needing liquidity without debt	Those looking to adjust loan terms or rates

Pros and cons

Pros

• Receive a large cash payment without taking out a loan.

  Use the money from selling your home for whatever you like.

• Stay in your home

  You can keep living in the home as a renter.

• No property taxes

  You’ll no longer have to pay a big tax bill annually.

• No paying for major repairs

  As a renter, you won’t have to buy a new furnace or pay for home repairs.

Cons

• You have a landlord

  Once you sell, you must answer to the investor and comply with a rental agreement.

• No building equity

  When an investor owns your home, you no longer benefit if your home goes up in value.

• Fees could apply

  You may pay closing costs, processing fees or real estate commissions on the sale.

• Rent can go up

  Your rent could go up substantially over time.

Where to get one

Truehold

Best Home-Sale Leaseback

4.8 _/5

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Home sale-leaseback details

Closing time	30 days or less
Eligible homes	Single-family homes
Eligible markets	Select cities in Georgia, Indiana, Kentucky, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, and Texas

Why it’s one of the best

Truehold offers a comprehensive sale-leaseback service, taking responsibility for home repairs, taxes, and insurance, which eases the burden on homeowners. 

Residents also enjoy benefits such as discounts on meal delivery and groceries, enhancing the overall living experience. With Truehold, you can stay in your home while accessing its equity, making it an excellent choice for those seeking a balanced, supportive solution.

• Get a cash offer within 48 hours
• No limits on how long you can lease your home
• Truehold covers the costs of major repairs, property taxes, and HOA fees

There are two good reasons to refinance over these other options: 

1. To lower your interest rate
2. To lower your payment by stretching the mortgage over a longer period of time.

However, it must really be worthwhile to offset the closing costs.

Michael Menninger, CFP®

Pulling equity out of your house without refinancing: What else to consider

Before choosing how to access your home equity, it helps to understand how taxes, credit, and broader market conditions can affect your decision and long-term costs.

Taxes

Different equity options come with different tax implications. Some products, such as home equity loans and HELOCs, may allow you to deduct interest if the funds are used for qualifying home improvements. Because tax rules can change and eligibility varies, it is a good idea to speak with a tax professional before moving forward.

Credit score impact

Most home equity products require a hard credit inquiry, which can temporarily lower your score. After that, the impact depends on how much you borrow and how consistently you make payments. Keeping balances manageable and paying on time helps protect your credit.

Market conditions

Interest rate trends can influence which equity option is most suitable. Lower rates may make refinancing or a home equity loan more attractive, while rising rates can increase the value of flexible options like HELOCs. Home equity investments are influenced by how much your home appreciates over the agreement term.

When choosing a method for taking equity out of your home without refinancing, we always start by understanding why you need the money, how much you need, and how soon. From there, it’s imperative to look at your balance sheet (assets and debts) and your cash flow. It’s also important to understand your spending habits to ensure whatever solution is recommended doesn’t end up being a bailout, and you find yourself in the same financial situation a year later.

Michael Menninger, CFP®

Alternatives that don’t involve taking equity out of your home

When evaluating ways to access home equity, you have several options if a HELOC, home equity loan, refinance, and home equity investment aren’t right for you.

Personal loans

Unlike equity-based products, a personal loan is unsecured, meaning you won’t have to use your home as collateral. Because of this, it often carries a higher interest rate.

Sell and downsize

Selling and downsizing are other options for extracting equity. This is perfect if the home no longer suits your needs or is overly spacious. It provides a lump sum payment, but it also involves moving, which isn’t ideal for everyone.

Rent out all or part of the property

Renting part or all of your home is another way to use your home’s value. It generates income but also introduces responsibilities as a landlord.

Government programs and grants

Depending on your situation, state and local governments, along with nonprofit organizations, offer programs and grants to help with home costs. These programs can provide financial relief without adding to your debt, but they often have strict qualification requirements.

Peer-to-peer lending

Peer-to-peer lending platforms can also be an avenue to get funds without going through a traditional financial institution. This online lending form often offers faster processing time but may come with higher interest rates.

Recap of home equity lenders without refinancing