HELOC vs Cash Out Refi

A HELOC is an open line of credit that allows you to pay it down and borrow again later when needed.

A HELOAN is a closed end-loan that the consumer eventually will pay off and doesn’t have the ability to make future draws against. In this video, D.O. discusses why a HELOC/HELOAN could be a better alternative to a cash-out refi, as well as how a homeowner could leverage equity on one property to use on a future purchase of a new home.