Home Equity: How to Use It A refinance pays off your current mortgage and gives you cash based on your equity. This is a great way to lower or lock in your mortgage interest rate and get large sums of money – $30,000 or more. You may have to pay closing costs; discount points; appraisal fees; loan processing fees; document fees; origination fees; funding fees; loan broker fees; and miscellaneous other fees. A home equity loan, a.k.a. a second mortgage, is good for homeowners who don’t need…