Your home is worth $200,000 more than you owe. You want to tap that equity. Two real options — and they’re nothing alike. In this episode of The Property Professor, you’ll see the 2026 rate spread (HELOC ~8.5% variable vs cash-out refi ~6.8% fixed), the dramatic closing cost difference ($0-$500 for HELOC vs 2-5% of loan for cash-out), and why if you locked in a low first-mortgage rate before 2022, the HELOC usually wins despite the higher headline rate — because you only pay it on the cash you actually pull out.
Plus the tax treatment most homeowners don’t know about: interest is only deductible if the funds are used to buy, build, or substantially improve the home (TCJA rules). If you’re considering tapping equity in Phoenix, Scottsdale, or coastal California, head to thepropertyprofessor.blog or book a call to run both scenarios on your specific numbers.
Runtime: 6:30 · Sources: AmeriSave (Cash-Out Refi vs HELOC 2026), Bank of America, PNC Insights, HonestCasa. Rate references: HELOC ~8.5% variable, cash-out refi ~6.8% fixed as of late 2025. Educational content from a licensed mortgage loan originator; not financial or tax advice for your specific situation. Speak with your lender about your numbers and a tax professional about your tax implications.
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