 TITLE: Can You Get a Cash-Out Refinance With Bad Credit? CONTENT: Options Other Than a Cash-Out Refinance\n---------------------------------------\nIf a cash-out refinance isn't for you, there are several other refinancing options you could look at, including a home equity line of credit and a home equity loan.\nAs you pay your mortgage, the money paid toward the principal converts into equity—which is the value of your property you actually own. A **home equity line of credit**, or HELOC, is a line of credit issued by a lender that is based on the equity you have in your home. Depending on the lender, you may be eligible for a line of credit equal to around 60% to 85% of your equity.\nA **home equity loan** is similar to a HELOC, but with one key difference. When you get a HELOC, the line of credit can be used almost like a credit card: borrow what you want, when you want. A home equity loan is more like a personal loan, in which you get paid a lump sum and then repay it over a fixed period of time.\nIn the case of the HELOC, the interest you pay will be variable, similar to a credit card's, but will only be based on the amount of credit you use. With a home equity loan, the interest rate will be fixed and paid out over the course of your pre-established repayment plan.\nDo your research when choosing between a HELOC and a home equity loan. And as always, if you are considering refinancing your mortgage using any of these options, make sure to check your credit reports and scores so you know what lenders will be using when they consider you for a new loan. END