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The best way to borrow against your home: HELOC, cash-out refi or home equity loan?

The article from WGME discusses three primary options for homeowners looking to access their home equity: a home equity loan, a home equity line of credit (HELOC), and a cash-out refinance. A home equity loan provides a lump sum with a fixed interest rate, ideal for those needing a specific amount for a one-time expense. In contrast, a HELOC offers a revolving line of credit with variable interest rates, suitable for ongoing or unpredictable expenses. A cash-out refinance involves replacing the existing mortgage with a larger one, pocketing the difference in cash, which can be beneficial if current interest rates are lower than the original mortgage rate. Each option has its pros and cons, depending on the homeowner's financial situation, the purpose of the funds, and market conditions.

Read the Full wgme Article at:
[ https://wgme.com/money/mortgages/home-equity-loan-heloc-or-cash-out-refi ]