Home equity line of credit vs refinancing out money from home

[Eric Laro]

Is it better to use a home equity line of credit on a home to get the money out or refinance out the money. Or is a HELOC a way to refinance out the money from a home. Is there another way to refinance out the money out a home. Also what is the best option overall.

[Chris Mason]

There is no "best option overall," because it depends on your goals.

HELOCs are either ARMs, or have terrible interest rates. But the flexibility that comes with being able to draw on it, pay it off, rinse, repeat, etc, makes it worth it. Flippers <3 HELOCs.

If it's a buy-and-hold, and you aren't going to pay the debt off ASAP, taking a 30YF generally makes more sense.