People need or want extra cash for a variety of reasons. For some, the extra cash provide them with a feasible way to pay off high-interest debts and loans, for others the extra money offers them a way to improve or build onto their primary homes, or buy second homes for investment properties or vacation homes.

Both mortgage refinancing and home equity loans allow homeowners to choose between a fixed mortgage rate and one of several adjustable rate mortgages (ARMs). But, home equity loans give you more flexibility on how much equity you want to cash out and loan repayment time options than mortgage refinances. The interest rates are lower for both these types of loans than personal loans because they are secured loans. This means you can lose your home if you can't keep up with the payments. However, both offer the tax advantages of being able to deduct the interest paid on the loan.

Unsecured personal loans require excellent credit, but don't involve any collateral. As a result of the lenders increased risk, the interest rates for personal loans are higher than those of mortgage loans. About the most you can get from a personal loan is $10,000, and they don't offer any tax advantages.

Which option you should take to cash out all depends on how much money you need and how much time you need to pay back the loan, among other factors. If you are a homeowner needing a large sum of money, a mortgage refinance or 2nd mortgage would be your best bet. In deciding between refinancing and a 2nd mortgage, keep the following in mind: "If you've got a favorable rate on a first trust deed mortgage, something in the 6s thereabouts or low 7s, you don't want to pay off a $100,000 mortgage to take out $20,000 and raise the rate on the whole amount," said Richard West, senior vice president and division manager at San Francisco-based UnionBanCal Corp. "You're much better off borrowing $20,000 and keeping the first mortgage."