Home equity lines of credit (HELOCs) are another way to borrow from your home equity. Assuming that you gain access to credit against your existing equity, you are still borrowing against the equity you have already invested. HELOCs are similar to credit cards in that you have a certain amount of available money to borrow. And a cash-out refinance replaces your existing mortgage with a new one. To use a cash-out refinance, you must have equity in your home. Every individual’s decision is unique, so do your research to determine what is best for you and your family before deciding whether to take out a HELOC or refinance with cash out.