HELOC vs. HEL vs. Cash Out REFI

[Jared Weaver]

Hi Everyone, just a quick green noob question here. Trying to make the best $ decision. Here is my scenario. Have a good credit score. We rent out our 1st home which we still have a mortgage on with only 56k left to pay off through citizens bank at 5% (old rate when purchased). Appraisal on that property is approximately only 110k I am assuming. Our primary home which we live in now we owe 177k on through pnc bank at 3.5% since purchase a few years ago and it will appraise for around 330k. In talks with PNC right now for a HELOC at 100k and 3% (variable with $100 lock in fee during moves in market). Probably can't get much of a better CASH OUT REFI rate than 3.5% on the primary property we are currently in.

I guess my question to the community is, what would be the wisest most prudent move to make to use equity from the home that we are currently in to pay off the 56k on the rental property 1st home?  Any advice, direction or recommendations for good banks/rates to work with in order to save money in the long run on the loan we will be taking on anyways to pay off the 1st home rental?

Thank you ahead of time for any time, effort and advice provided.

Jared