Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments.

To tap that home equity, homeowners have to turn to banks, credit unions and other lenders for tools such as home equity loans, home equity lines of credit (HELOCs) and cash-out refinancing. Each option has its own benefits and advantages and suits some homeowners better than others.

They possess a record $11 trillion in tappable home equity or about $203,000 per mortgage-holding household. Cashing in some of that e