Cash-out refinance vs. home equity loan or line of credit
If you’re interested in borrowing against your home’s equity, you have options. You could apply for a home equity loan (HELOAN) or a home equity line of credit (HELOC). Or you could apply to refinance loans secured by your home—typically your mortgage(s)—to get cash back. (This is commonly called cash-out refinancing.) Consider the pros and cons of each choice before making your decision.