How fast can you get equity out of your home?

Owning a home can be a great investment. And one of the perks of home ownership is equity That appreciates the home’s value over time and you pay off your mortgage. If you need funds for a major expense, such as paying medical bills or home improvementYou can tap into this equity in different waysOften at rates that are substantially lower than other financing options.

That said, access to your home equity is not instant. Applying for a home equity product, getting approved, completing all the paperwork and closing takes some time. To determine which option is best for you, it can help to know how long each one takes so you can weigh it against how quickly you need the funds.

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How fast can you get equity out of your home?

How quickly you can pull equity from your home depends on many factors, but the following are some general ranges to give you a starting reference point.

Home equity loan

One way to get equity out of your home is to take out a Home equity loan. With this type of loan, you borrow a lump sum of cash based on it How much equity You are in your home. You then repay this amount over a fixed period of time – usually five to 30 years – usually at a fixed interest rate.

Getting a home equity loan It usually takes between two weeks to two months. But, like the other options on this list, the length of time can vary depending on your lender and how long it takes to submit your information, provide any follow-up documentation, get your home appraised, and close.

Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) Another option is to access your home equity. A HELOC works like a credit card, giving you access to a line of credit that you can draw on as needed. You pay back only the amount you borrow (usually at a variable rate) and payments don’t start until after the draw period, which usually lasts between 10 and 20 years.

Getting a HELOC It usually takes two to six weeks.

Cash-out refinancing

A Cash-out refinancing Allows you to replace your existing mortgage with a new one that is higher than your loan amount. The difference is given to you in the form of cash, which you can use for your needs. Depending on the product you choose, you will be refunded at a fixed or adjustable rate.

method By getting a cash-out refinance It usually takes 30 to 60 days from start to finish.

reverse mortgage

A Reverse mortgage A loan available to homeowners 62 and older. It works like a cash advance — you have access to your home’s equity now, and you pay it back using the proceeds from the eventual sale of your home. You can get reverse mortgage financing as a lump sum, line of credit, or monthly payment, and you don’t have to repay the loan until you move out or die.

method Getting a reverse mortgage It usually takes 30 to 60 days.

Selling your home

Finally, you can access your home equity by selling your home. If you need a large amount of cash and no longer want to own your property, selling your home can be a viable option.

However, depending on a variety of factors — including current market value and buyer demand — selling your home can take weeks to months from the time you list it to closing.

Compare today’s home equity rates online now.

Bottom line

There are several ways to get equity out of your home, and each option has pros and cons. The amount of time it takes to get funding is just one thing to consider.

Whether you choose a home equity loan, HELOC, cash-out refinance, reverse mortgage or home sale, take the time to do your research and carefully consider all your options. And don’t hesitate to consult a financial advisor for guidance customized to your timeline, budget and needs.