Cash out refi vs. HELOC

[Sadierose Saucier]

Hello!

Currently own and rent 2 multi families (triplex and duplex). When we refinanced, my mortgage lender said we only had the option to do HELOC, not cash out refi. What are the main reasons for this? HELOC's are more difficult to reinvest because then you have a new monthly payment to use the money. Could someone please explain the main rules regarding the 2 different options and how we could do a cash out refi next time instead? I have always been very confused between the two. Note: my mortgage lender works for one bank, I'm thinking I need to start working with someone that has more options available. Thanks!

[Timothy Hero]

I'd question if the loan officer makes more by selling HELOC's... everyone offers cash-out refinances.