HELOC vs. Cash out Refi

[Alishea B.]

Finally I am ready to get my loan to build my empire. Yayyyy. After a lot of research I decided to keep my property in my name and I found the best banks with the best APR and best rates for me in this area. Here's what I'm looking at.

I own a SFH property here free and clear appraised at 73 grand. Credit score is over 620(Thank God)

Option 1 Heloc fixed rate 10 years 7.75. APR. 90 to 100 prevent of LTV. No closing cost. 2 weeks. My monthly payments would be 876.75. Insurance is 90.00. Taxes are 1000 a year. I pay that separate. I have the option to refi in a few years. This is a 2 week process.

Option 2 Cash out Refi. 30 year fixed 3.875 APR 90 to 100 percent loan to value. Monthly payment would be 343.00 a month plus taxes and insurance. It would be under 600.00 a month. This process is 30 days. No closing cost but 35.00 credit check.

Option 3 HELOC 85% LTV which gives me 62,000. Prime + 125. At rates right now my payment would be 369.00 a month. Insurance and Taxes are not included. This is not fixed and could change anytime with payments. I was told I could call an advisor to tell me estimates of how and when the variable rates may change. This is 20 years.

Option 4 Conventional 20 year fixed. 445.00 a month. 62,000 as well. 20 years. 3000 closing costs. I don't know what APR rate is. Its not in my notes.

So I want to know what do you think and What would you do? Thank you for your responses. I appreciate it.

[Alipate Moleni]

My rookie opinion: if your saying you can get 90 to 100% LTV on the cash out refi I'd say that's your best option by far. especially with the low fixed 30 year apr (everyone is saying rates will only go up from here...). Use that cash and whatever you've saved up to by a distressed property with cash and begin the BRRRRR (did I get all the R's?) process... YESSSAH! question: Your house's value is 73 G's? Dang maybe I need to look into investing in Georgia...