What is better for the long term, cash-out refinance or HELOC?

Only you can say.. With a HELOC, you apply one time, and you have unlimited access to the equity without having to re apply each time.. The closing costs associated with a HELOC are minimal.. Usually around $500 or less.. With a cash out, you apply once, get the cash, and you have a new mortgage... because it's a new mortgage, you pay full refi closing costs, which typically run around $3000.. If you need to tap into your equity again, you have to re apply, pay more costs all over again... As Loan Officer, we get paid on the TOTAL loan amount.. If you do a cash out refi.. I get paid much more, then if you just do a HELOC... I'm not pointing fingers here, but sometimes the compensation is what drives the advice you get from a LO... The real question is how much of your equity do you need, when do you need it, and what will you use it for??? So, only you can say what's best for your scenario.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714

Cash out refinance. If you take a HELOC, you will NOT be getting a fixed rate. Since you indicated a long term time horizon, you DONT want to be in a loan that will expose you to interest rate risk in hte future. The cash out refinance will allow you to select a fixed rate product and eliminate your interest rate risk.

It all depends on what you use the cash for, and your exit strategy. One caution, some HELOCs are subject to freezing or cancelation.

With out knowing all the information, that is very hard question to answer correctly. What your doing with the funds will help us to answer. Are you paying off debt ? paying for collage, repairs to home ? As others have said, What is the current loan to value ratio ? and how much are you looking for ? What is current rate and term ?

From a cost point of view, Heloc closing cost is cheaper in the short term. In the long term, it is more expensive than a regular cash out refinance. Heloc is just like a credit card unless you pay it off in full.In the long term, I will recommend cash out Refinance because it is a regular mortgage and you will have a fixed amortized payment. Again it depends on your objective.Call me and I can help either way.Thanks 478-330-6382

That is a difficult question without knowing what your current situation is and your goals.

Fixed Rate mortgages are best over the long term, simply because the market is it's lowest right now. There are times that Helocs may be better suited, but without the details I will say go Fixed.

Cash-out refinance is much better. You will get a fixed rate & payment vs. prime + .25-1.00. The heloc would be great in the fact that you can pay the balance down and use the line again and again as needed. Feel free to email me directly if you should have any follow up questions.sdrilling@myeaglelending.com

Cash out is better as you get a fixed rate vs prime + .25-1.00. The heloc would be great if you want to use it like a credit card. Please email me with any follow up questions. sdrilling@myeaglelending.com