Both the Wealth Builder HELOC and a cash-out refinance allow California homeowners to access equity from their property. But they work very differently, and the right choice depends on your goals, rate environment, and financial behavior.

Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a new, larger fixed-rate loan. You receive the difference between the new loan amount and your existing payoff as cash at closing. The new loan has a fixed payment, a fixed rate, and a set amortization schedule — typically 30 years from the new closing date.

Wealth Builder HELOC

The Wealth Builder HELOC also replaces your first mortgage, but instead of a fixed loan it gives you a revolving line of credit. You access equity as needed during the draw period, pay interest only on what you draw, and have the flexibility to repay and redraw. The rate is variable, not fixed.

Key Comparison Points

• Rate: Cash-out refi offers a fixed rate; Wealth Builder HELOC is variable (SOFR + margin)
• Payment: Cash-out refi has a fixed monthly payment; HELOC payment varies with balance and rate
• Flexibility: HELOC is revolving — you can repay and redraw; cash-out refi is a one-time event
• Payoff speed: HELOC rewards disciplined income sweeping with potentially much faster payoff
• Rate risk: HELOC rate floats with SOFR; cash-out refi locks in today’s rate

When the Wealth Builder HELOC Wins

The Wealth Builder HELOC is typically the better choice when you have positive monthly cash flow, want flexibility, and plan to actively manage your balance. When rates are rising sharply or you need payment certainty, a fixed cash-out refinance may be more appropriate.