how to get started using equity in primary home

Question

I have significant equity built (a few hundreds of thousands) in my primary home.

Is cash-out refinance a good way to get started? is getting HELOC a better option?

Daniel Kim · Answer

I can't speak to cash-out refinancing since I haven't done one yet (tempted with all these low rates though...) I took out an HELOC on my first home to buy my second. Since you don't know how long it may take to find a property and spend the money, I think a line of equity is preferable since you don't start paying interest until you use it.