What’s the difference between a HELOC & Cash Out Refi?
Quite often, CUTX members call and inquire about doing a cash out refinance. As we begin discussing their situation & what they’re looking to accomplish or do, sometimes we discover that a cash out refinance is not the best option for them. A cash out refinance will take your first mortgage, refinance it, get you some cash out in the process, and that’s where it ends. If you ever want to take cash out in the future, you’ll have to refinance and go through that whole process all over again.
A home equity line of credit works differently. We can leave your first mortgage alone and set up the HELOC separately. This means you can have access to those funds repeatedly. Whenever you access the funding available from your line of credit, you won’t have to pay the closing costs that would be due each time you set up a cash out refi.