HELOC or Refi to finance?

[Greg Worzalla]

With the low refi rates out there, I'm wondering if this is now the better option to finance my first time rental property. Needing $40K for the DP, if I use my current HELOC with a 3.75% rate (assuming it says around this) it seems I would be cheaper to do the refi at 2.75%. I know the closing costs could bump the refi payments a little when spread out over the term. The big question is the 5yr draw period on the HELOC would be a lot less until that period is over. I know I've read that you use the draw period until you can refinance the investment property and take the money out of that to pay off the HELOC, but I would be afraid that when that time comes, the rates most certainly will be higher than they are now and I will not want to refinance the property. The numbers are below for more analysis. Thanks for any and all input. I honestly have no idea which route to take on this.