Cash-out or get a bigger mortgage on my next home?

[Kirsten Milliken]

I currently own a rental property home in Indy that I purchased with a HELOC on my primary residence. We are now looking to move to Tennessee. I plan to rent my current residence and buy a new home in TN.

I am looking for a lender who can evaluate and recommend whether it is best to mortgage my house in Indy and use that as a large downpayment or just get a bigger mortgage and put the traditional 20% down on my new home.  Obviously, a lender with great mortgage rates is preferable!!!