While the amount of equity you can take out of your home varies from lender to lender, most allow you to borrow 80 to 85 percent of the appraised value of your home. If you have at least 20 percent, the most common ways to take advantage of excess capital are through a cash-out refinance or a home equity loan. Cash-out refinance typically allows you to withdraw up to 80% of your home equity. Use this home equity loan calculator to see if a lender could give you a home equity loan and how much money you could borrow.
Home equity refers to how much of the home is actually yours, or how much you “paid”. Every time you make a mortgage payment, or every time the value of your home increases, your equity increases. As you build up capital, you may be able to borrow in exchange for it.