Borrowing from home equity — whether through a home equity loan, HELOC, or cash-out refinance — can be a good way to access large amounts of cash at relatively low interest rates compared to credit cards and personal loans. But, it’s not without risks. Since your house acts as collateral for the loan, you could lose your home if you fall behind on payments. Because of this, it’s important to only borrow what you can afford to pay off and never take on debt for nonessential expenses like a vacation, wedding, or luxury purchase.