refi or heloc /analysis paralysis

[Brenda Maddox]

Hi Everyone,

I am in Analysis Paralysis phase... I have a home with some great equity in it. I could get a Heloc right now with a low interest rate and get 170,000 out so I can invest in other things. Alternatively, I could refinance for a 30 year and get the money out. Which would you do and why? Thanks for your help.

[Justin Sherrock]

@Brenda Maddox Given the current environment with historically low interest rates, but inflation looming, I would definitely refinance over doing a HELOC. You are going to lock in at an interest rate that literally can't get any lower versus a HELOC that is going to likely have a floating interest rate. If rates go up in 12-18 months you will be faced with higher payments and likely have to refi in a higher rate environment. Inflation is real risk, lock the cheap money in while it lasts!!