Knowing the differences between a HELOC and a Cash-Out Refinance can make all the difference, especially when you need cash fast. The most distinguishing characteristic of a Home Equity Line of Credit (HELOC) is that it is a line of credit. This allows borrowers to withdraw any amount up to the credit limit designated by the lender. Cash-out refinancing is when a homeowner refinances their mortgage to a new mortgage, typically to benefit from a lower interest rate.<
