Cash-out refinance
You replace your existing mortgage with a larger one and take the difference in cash. One loan, one payment — but you are re-setting the terms of your entire mortgage, which matters most if your current rate is one you would rather keep.
HELOC
A line of credit sits behind your existing mortgage and leaves it in place. You draw what you need when you need it. Flexibility is the advantage; a variable structure and a draw period with its own rules are the trade-offs.
How to decide
Start with three questions: how much do you need, do you need it all at once, and how much do you value keeping your current first mortgage? Those usually point clearly in one direction.
Bridge financing is worth mentioning too if the real goal is buying before selling.
Common questions
- Can I do either on a second home or rental?
- Both exist for non-primary properties, though the lender pool is smaller and the guidelines are stricter. Worth a specific conversation rather than a general answer.