HELOC cash-out Refinance

[Harley Cedoit]

HELOC vs cash-out Refinance

[Jasmin Elalfy]

Quote from @Harley Cedoit:

HELOC vs cash-out Refinance

So with a HELOC acts like a second mortgage on your property, you can actually get better rates than a refinance most of the time. I highly suggest for you to go to a big bank or a local federal credit union (you might find a better rate at a credit union) For a home equity line of credit. When you cash out refinance you are more likely to get a higher rates and it is more tedious of a process since it is like you're getting another full mortgage on the property. The benefit with a cash out refinance if you already have more than one mortgage on the property you can just refi into one big one, and have one mortgage payment. I would say the biggest difference between the two is a cash out refinance is if you need all of the money out of your home now, with the HELOC you have the flexibility to use your equity as you need & it is like a credit card, you only pay interest on what you use. Hope this helps!!