is a HELOC better then a Refinance for pulling out equity?

[Evan Coburn]

is a heloc or a refinance better to get equity out of a home for a 2nd investment property? why? thanks

[Brian Garrett]

The main benefit to a HELOC is you only pay interest on the money you're actually using.

With a cash-out refinance you're paying the interest from day one regardless if you use the funds.

Think of a HELOC more like a credit card with a revolving line of credit you keep paying back to re-use.