5 Ways to Unlock Your Home Equity: A Complete Comparison

What are the ways to unlock home equity for a move?

If you want to use your home's equity to buy your next place, you have five main options: a bridge loan, a HELOC, a home equity loan, a cash-out refinance, or simply selling first. Each unlocks equity differently, with real trade-offs in speed, cost, and how well it fits a "buy before you sell" move. The best choice depends on your timeline, how much equity you have, and how much certainty you need. Here's how they stack up for Michigan homeowners.

1. Bridge loan

A bridge loan is purpose-built to buy your next home before the current one sells. It taps your equity for a down payment now and gets repaid when your home sells. It's fast and lets you make a strong, non-contingent offer. The trade-off is higher short-term cost. Best for: buyers who've found their next home and want to move on their timeline.

2. HELOC

A HELOC is a revolving line of credit against your current home. It's flexible and generally lower-cost than a bridge loan, but you usually have to set it up before you list, and it stays tied to the home you're selling. Best for: homeowners who planned ahead and have a slower, flexible timeline. See our bridge loan vs. HELOC comparison for a closer look.

3. Home equity loan

A home equity loan gives you a lump sum against your equity at a fixed structure, repaid over time. Like a HELOC, it typically needs to be in place before you sell, and it adds a payment on top of your current mortgage. Best for: homeowners who want a fixed lump sum and aren't racing a purchase deadline.

4. Cash-out refinance

A cash-out refinance replaces your current mortgage with a larger one and gives you the difference in cash. It can free up equity, but it resets your primary mortgage and generally doesn't make sense if you're about to sell — you'd be refinancing a home you're leaving. Best for: homeowners staying put who want to access equity, not those moving soon.

5. Sell first, then buy

The traditional route: sell your current home, then buy with the proceeds in hand. It's the cheapest on paper and removes the two-home overlap, but it can leave you scrambling for a place to live in between and forces you into a weaker, contingent buying position. Best for: homeowners with flexible living arrangements and no competition for their next home.

Which option is right for me?

If you're trying to buy before you sell in a competitive Michigan market, the realistic contest is usually between a bridge loan and a HELOC — and the HELOC only works if you set it up in advance. For most people who've already found the next house, the bridge loan wins on timing and offer strength. If you have all the flexibility in the world and no rush, selling first can save money.

The right answer really comes down to your specific numbers and timeline, which is exactly the conversation I have with clients every week.

Frequently asked questions

What's the fastest way to access my equity to buy?

A bridge loan is typically the fastest tool designed for buying before selling, since it doesn't need to be set up months in advance like a HELOC or home equity loan.

Which option lets me make the strongest offer?

A bridge loan, because it puts real funds behind your purchase up front so you can make a non-contingent offer.

How do I know how much equity I can access?

It depends on your home's value, your mortgage balance, and the program. Our guide on how much equity you need walks through the math.

Let's find your best option

There's no one-size-fits-all answer — the right tool depends on your equity, timeline, and goals. Take the qualifier quiz or call me at (734) 891-4348, and we'll compare your real options side by side for your Michigan move.

David Keblaitis, NMLS #167980, powered by Cornerstone First Mortgage, Inc. (NMLS #173855). Licensed by the Michigan Department of Insurance and Financial Services. Equal Housing Lender. Bridge loans and Buy Before You Sell programs are offered to qualified borrowers only; terms, timelines, and availability vary by borrower and are subject to change without notice. This article is educational, is not a commitment to lend, and is not financial advice.