If you bought your house before 2005, you could be sitting on a goldmine. Here's how to tap it.

If you purchased your house in the 1990s or early 2000s, there's a good chance it's worth exponentially more than what you paid for it — and that means you're sitting on wealth that you can tap into now.

A home purchased for $114,600 in 1995 saw its value increase to $320,700 last year, according to a Realtor.com analysis of National Association of Realtors home sale price data published in September. Additionally, a home purchased for $229,000 in 2005 was worth $336,417, a value increase of $206,300. Meanwhile, many homeowners who stayed put for the last quarter century have hundreds of thousands of dollars in additional home equity.

"This equity isn't just a number on paper; it's real wealth you can use," Realtor.com senior economic research analyst Hannah Jones wrote in the report.

Here are three ways you can tap your home equity in 2026.

Often referred to as second mortgages, home equity loan and a home equity line of credit (HELOC) are two ways to borrow against your home equity to get cash from a lender. Home equity is the difference between your outstanding mortgage and how much your home is worth. In short, the total portion of your home that you own outright.

The key difference between the two is the structure: home equity loans come as one lump sum and repayment starts immediately after the funds are distributed.

HELOCs, on the other hand, are revolving lines of credit, meaning you can take out what you need up to the limit during the draw period. During that time, you'll only be required to pay interest on what you take out.

You usually need a credit score of 650 or higher and a debt-to-income ratio of no more than 43% to apply for either.

Typically, you can withdraw up to 80% of your equity with these types of financing tools, so if the buyer who paid $229,000 in 2005 put down 20% and has been steadily making mortgage payments, they'd have an $336,417 in home equity in 2025. They could take out a home equity line of credit with a loan-to-value ratio of 80% and borrow up to $249,357 — over $40,000 more than they paid for the house.

To be sure, there are downsides of HELOCs and home equity loans: Because the debt in each type of product is tied to your home, your lender could foreclose on your home if you fail to pay.

If you would prefer to stick with one mortgage payment a month, you'll probably prefer a cash-out refinance over a home equity loan or line of credit.

With this type of loan, you'll take out a mortgage larger than your current one. The loan will first go toward paying off the first mortgage, and the remainder you'll get in cash.

You'll pay off the whole thing as a monthly mortgage payment.

To qualify, you'll usually need a credit score of 620 and a debt-to-income ratio of 43% or less. You can access up to 80% of your home value using this type of mortgage.

With a home equity investment agreement, you'll sign over a portion of your home's current and future value for a lump sum of cash.

These agreements can appeal to homeowners who have built up equity but lack cash, or whose credit isn't strong enough for a home equity loan or a cash-out refinance

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