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Cash-Out Refinance vs. HELOC: What’s the Difference?
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Cash-out refinance vs. HELOC: which is the best way to use your home equity in 2024? You may be sitting on a low mortgage rate and wondering what to do. Maybe you don’t need a huge sum of cash but instead want to take out just a portion of your equity—is a HELOC (home equity line of credit) the best way to tap into it? Mortgage broker Christian Bachelder is on to explain exactly when you should (and shouldn’t) use a cash-out refinance or HELOC.
Depending on your investing strategy, one of these options may be better than the other, and getting it wrong could jeopardize your next investment. So, before you extract some of your home equity in a HELOC or take on an entirely new loan and give up your (potentially) lower rate, make sure you know the pros and cons of EACH option. Christian walks through exactly who should use which, when to use one over the other, and the one BIG risk to a HELOC that every investor should be very cautious of.
00:00 Cash-Out Refinance vs. HELOC
00:32 Sponsor: Rent to Retirement!
01:24 Cash-Out Refinance
03:13 HELOC (Home Equity Line of Credit)
05:02 Pros and Cons
09:02 One BIG Risk…
10:05 Which to Pick
