Q: I’m considering allowing an investment company to invest in my home so that I can receive a personal loan. I took out a mortgage approximately 18 years ago. The original company went out of business. Over the years, my mortgage has been transferred to several mortgage companies because they were bought out by a larger bank. I’m still in the home.

Some years ago I was considering foreclosure due to financial difficulties. However, the foreclosure wasn’t approved because I was current on my payments. How do I go about getting a mortgage release that the investing company is requesting?

I called all previous mortgage companies that are still in business where my mortgage was transferred. None of them had a mortgage release form in their records. I even checked at my local county clerk’s office.

A: We think there might be a different way to solve your problem. While you’ve had a mortgage on your home for the last 18 years, it appears you haven’t paid off the balance of the loan. The lender can’t release the lien until your debt has been paid in full.

It’s unclear from your letter what you intend to do with a personal loan. Regardless, if you need cash, there are other types of loans as well as other financial products you might consider.

The first option is a cash-out refinance. If you have equity that’s built up in your home over the past 18 years, and you have the income to support a new loan, you might be able to take out some of the cash that way. You might also think about a home equity loan (a second mortgage) or a home equity line of credit (HELOC).

When you go to a bank, credit union or mortgage company, they should be able to offer you loan products that would give you the right to borrow, repay and re-borrow money based on how much equity you have in your home.

Equity is the difference between what you owe your lender and what your home is worth. It has nothing to do with how much you paid for your home. Let’s say you owe $100,000 and your home is worth $400,000. In this example, you’d have $300,000 in equity in the home.

Here’s how home equity loans work: When you have a substantial amount of equity in your home, and want to borrow more money, the lender will simply allow you to take out a home equity loan. Once you sign the paperwork, the cash gets deposited into your account and you begin paying interest.

A HELOC extends a line of credit based on your equity. When you need to tap into your equity, you use your HELOC. At that point, you begin paying interest on the money you borrow. If you never need your HELOC, then you don’t pay any interest.

With a cash-out refinance, you pay off the existing balance with a new loan that’s for a larger amount than what you owe. The excess funds go into your bank account.

Today, mortgage interest rates are around 7% for people who have excellent credit scores. HELOCs and home equity loans are about one percentage point higher, or 8%, on average. If your credit score is lower, you’ll pay a higher interest rate on all loan products.

Whatever type of financing you’re looking for, you should talk to several financial institutions, including a local savings and loan, a national bank, a mortgage lender and a credit union to see what products they have to suit your needs. You might also look at online mortgage companies. Bankrate.com or GoBankingRates.com can help you compare interest rates and fees.

Before you sign papers, make sure you understand what product you’re buying — because that’s what you’re doing when you take out a loan.

Ilyce Glink is the CEO of Best Money Moves and Samuel J. Tamkin is a real estate attorney. Contact them via ThinkGlink.com.