Do you need the money from the equity in your home? Do you have a child’s tuition to pay? Do you have medical expenses to pay for? Do you have debt, such as high-interest credit cards, that you want to consolidate? The equity in your home is a great way to pay for expenses or pay off debt, but choose the loan option that is right for you. You can obtain cash from your equity in two different ways. You may want to refinance rather than take out a home equity loan. A refinance will pay off your existing mortgage plus give you the extra cash you need for other things. A home equity loan will give you the extra cash you need, but it will not pay off your existing mortgage. With a refinance loan, you have one monthly payment. With a home equity loan, you have two.