Key takeaways

A home equity loan gives you a lump sum at a fixed rate, with the same payment every month for 5 to 30 years, in addition to your existing mortgage payment.

Rates run lower than personal loans or credit cards because your house secures the debt. That’s also the risk: If you fall behind, you can lose the home.

Most lenders cap your total home debt at 80% to 85% of your home’s value, which means you keep at least 15% to 20% of its value as your own stake.

Closing costs typically run 2% to 5% of the amount you borrow, though some lenders waive them entirely.

If a home equity loan doesn’t fit your needs, compare it against a HELOC, a cash-out refinance or a personal loan before you commit.

Borrowing against your home equity is one of the cheapest ways to get a large sum of cash.…