Which option is better for you? A HELOC or cash-out refinance?
Which is better for you: a home equity line of credit or a cash-out refinance? Today we want to explain the difference between these two options, when you might use them, and which one is best for your situation.
You can watch our full explanation in the video above or skip to each topic using the timestamps provided:
0:00 — Introduction
0:58 — Explaining ROE (return on equity)
2:19 — Should you take out a HELOC or do a cash-out refinance?
3:20 — Explaining HELOCs
4:35 — HELOCs have an adjustable interest rate
6:26 — Explaining cash-out refinances
7:51 — The biggest pro of cash-out refinancing is that it isn’t taxable
8:34 — The interest you pay on a HELOC is tax-deductible if you improve your home
9:46 — Each option has its pros and cons
10:00 — Wrapping up today’s topic
If you have questions or would like to know which option is better for you, please call or email us. We are always willing to help!