HELOCs aren’t a bad idea if you know what you’re getting into. As long as you’re prepared to make the monthly payments (in addition to your existing mortgage payment) and you have a tight rein on your spending habits, HELOCs can be a very useful financial tool. On the other hand, cash-out refinances are great if you want to keep just one monthly payment and if you have a good handle on the expenses you need to cover.