Cash out refi vs. home equity loan: What you need to know

Source: Bankrate — 

If you need cash and have a sizable amount of home equity built up, you may consider a cash-out refinance or a home equity loan.

Both a cash-out refinance and a home equity loan allow you to borrow against your home’s equity, using your home as collateral. A cash-out refinance is the process of replacing your existing mortgage with a new one, while a home equity loan is a second loan you take out on top of your mortgage.

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