Should I do a cash-out refinance or a HELOC?

It hinges on your first-mortgage rate. If your current rate is low, a HELOC lets you tap equity without disturbing it. If rates have fallen or you want one fixed payment, a cash-out refinance may be better.

A cash-out gives a fixed rate and lump sum; a HELOC gives flexibility at a variable rate. We'll compare the total cost of both for your numbers.

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