If your home equity total value is between 75 and 80 percent of your home’s current market value, then you’ll meet the preference for most lenders. Depending on your credit score and your ability to prove you can afford the monthly payments, the actual amount you may be limited.

There are four main types home equity borrowing:

• Cash-out refinance. Get a brand new mortgage that is more than your existing mortgage. Use your new mortgage to pay off your existing one, and use the rest of the money for anything you want.
• Home equity loan. Get a second mortgage and keep your existing mortgage.
• HELOC. Keep your existing mortgage, but gain more flexibility through this form of borrowing, when compared to other borrowing options
• Reverse Mortgages. If you are a senior, 62 years of age or older, apply for a reverse mortgage to borrow from your home equity.

If you have an okay credit score, and proof of income, you can use the equity acquired in your home to secure a loan to borrow money at a low interest rate, for any reason. A HELOC reduces the risk in the eyes of lenders, since it’s a ‘secure’ loan.