When you’re considering a cash-out refinance vs HELOC, the best option really depends on your unique situation — what your current mortgage rate is, the amount of equity you have in your home, and what you need the money for, among other factors.
Generally speaking, a HELOC is best if you’re not sure how much you need, you want access to cash for an extended period of time, or you’re not interested in replacing your current mortgage loan’s rate or terms. If you have a set amount of costs you’re trying to cover, you’re consolidating debts, or you could benefit from replacing your existing mortgage loan with a new one, a cash-out refinance may be best for you.