Using Home Equity: When a HELOC or Cash-Out Refinance Makes Sense in Wisconsin

Dustin Grenier
Oct 16
2 min read

Your Wisconsin home's equity window won't stay open forever. With mortgage rates fluctuating and home values at historic highs, now might be the perfect time to tap into the wealth your property has been quietly building. Whether through a HELOC or cash-out refinance, Team DG helps Wisconsin homeowners seize this opportunity before market conditions shift, ensuring you get maximum value while minimizing risk.

What’s the Difference?

HELOC (Home Equity Line of Credit)

Works like a credit card, but tied to your home’s equity.
You can borrow, pay it back, and borrow again as needed.
Great for ongoing expenses like home renovations, tuition, or debt consolidation.

Cash-Out Refinance

You replace your current mortgage with a new, larger loan.
You get the difference back in cash.
Best if you want to lock in today’s mortgage rates in Wisconsin or consolidate multiple debts into one payment.

When Does a HELOC Make Sense in Wisconsin?

You want flexibility (borrow only when you need it).
You’re making home improvements that add value, like finishing a basement or adding a garage.
You already have a low mortgage rate and don’t want to refinance your first loan.

When Does a Cash-Out Refinance Make Sense in Wisconsin?

You’d benefit from today’s current mortgage rates in Wisconsin.
You want to refinance in Wisconsin to lower your monthly payment and access equity.
You need a large, one-time cash amount (like paying off student loans or funding a big remodel).

Local Factors Wisconsin Homeowners Should Watch

Wisconsin home prices / median home price in Wisconsin: Equity depends on today’s housing market trends. (See our latest market update 📈)
Best time to buy a house in Wisconsin: Buyers are watching rates closely, which impacts refinance decisions.
Downpayment assistance Wisconsin: Some programs even allow you to combine equity use with first time homebuyer programs in Wisconsin.
Housing market trends in Wisconsin: Wondering “Will home prices go down?” or “Is it a good time to buy a house in Wisconsin?” Our Wisconsin real estate blog covers these trends.

Should You Use Equity Now?

Using home equity is powerful, but not for everyone. Consider:

What credit score do I need to buy a house in Wisconsin or refinance? (Your score affects terms.)
How much money do you need to buy a house or to close on a refinance?
Future plans - are you staying in your home, or thinking about upgrading to a larger property?

If you’re curious about whether a HELOC or cash-out refinance is right for you, our local Wisconsin loan experts at Team DG can run the numbers and guide you.

Final Thoughts

Both HELOCs and cash-out refinances can be smart financial tools if used strategically. The right choice depends on your interest rate, Wisconsin home values, and personal goals.