A HELOC and a cash-out refinance both use the equity in your home to get you the cash you need for other expenses. HELOCs work somewhat like a credit card. There is a draw period where you use what you need, when you need it. During the draw period, you are typically making interest-only payments, and the interest rate is usually adjustable.
With a cash-out refinance, you replace your current mortgage with a new mortgage to help with expenses such as tackling home improvements or paying off other debt. With a fixed-rate cash-out refinance, you know exactly what your rate will be and what you will pay each month.
The best option for you depends on your financial need and situation. Embrace does not offer HELOCs, but our mortgage specialists can help you decide.