Tapping Your Home Equity: HELOC vs. Cash-Out Refinance

Your Home Is an Asset

If you've been in your Florida home for a few years, chances are you've built significant equity thanks to the state's strong appreciation. Two popular ways to access that equity are a HELOC and a cash-out refinance.

HELOC (Home Equity Line of Credit)

A HELOC works like a credit card secured by your home. You get a credit line you can draw from as needed during a draw period (typically 10 years). You only pay interest on what you use. Rates are usually variable.

Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a new, larger one. You receive the difference in cash. This gives you a fixed rate and a single monthly payment, but you're resetting your loan term.

Which Is Better?

Choose a HELOC if you need flexible access to funds over time (home renovations, education). Choose cash-out refinance if you want a lump sum at a fixed rate and your current rate is similar to or higher than today's rates.

Talk to a Beacon Mortgage advisor to explore your options.