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HELOC vs Refinancing: Know your options
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Posted on Thursday, June 10, 2021
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With today’s unusually low interest rates, now is an ideal time to consider the benefits of refinancing your home or taking out a Home Equity Line of Credit.

Both options allow you to use the equity you have built into your home to borrow money. Below we outline a few other differences.


HELOC vs Refinance:


Home Equity Line of Credit (HELOC)
  • Similar to a credit card, you have a maximum limit and access funds as needed, making regular payments
  • Monthly payment varies depending on how much you borrow
  • No closing costs
  • Funds are accessible through bank provided HELOC checks or advancements to your checking account.


  • Approved funds received all at once as a lump sum
  • Monthly payment is fixed
  • Some closing costs apply, which may be included in the refinanced amount (not necessarily out of pocket)
  • Can be moved over from the bank or lender who originally financed the mortgage

Learn more about our mortgage loan options, and visit with our Mortgage Loan Officers for more details on each of these options.  


Preapproval, saving money or obtaining cash through refinancing and HELOCs are not guaranteed. Western State Bank does not offer credit cards.


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