This is a good question. Their are a couple of ways to do this. I originate loans in Texas so I will share the ones available here.
First off, if it is your primary residence the loan amount will be maxed out at 80% of your appraised value. Second homes or Vacation homes and investment properties can go to 90% but usually require mortgage insurance and escrows if the loan to value is over 80%.
There are 2 types of loans:
Home equity loan – with good credit you can get a good fixed rate that remains the same through the entire term of the loan. These loans usually have closing costs.
HELOC – Home equity line of credit – these loans usually do not have any closing costs but the rate is usually adjustable and tied to prime. If the prime rate goes up then so does your rate.
Take a look at Home Equity Loan vs. HELOC for more information.