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Cash-Out Refinance vs. HELOC: What’s the Difference?
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HELOC vs. refinance: which is the best way to access home equity? For many Americans right now, there’s a sizable amount of home equity sitting on the sidelines. But how do you access it to buy more rentals, perform home improvements, or pay for some big expenses? You can either use a cash-out refinance to take out a large amount of home equity at once OR access a HELOC (home equity line of credit) to use your home equity whenever you please. But which is the best pick for you?
Licensed mortgage advisor Hannah Escher sums up the pros and cons of each equity-extracting method, showing which loan/line of credit is best for which investor and the downsides you MUST be aware of before you apply for either of these. Both are great options, but your long-term goals and use for the money will influence whether a cash-out refinance vs. HELOC makes the most sense for you.
00:00 Best Way to Use Your Equity?
00:42 Refinancing Explained
02:44 HELOCs Explained
04:41 Refinance Pros and Cons
08:35 HELOC Pros and Cons
13:41 Which to Choose
