Better to do a Refi or a LOC?

[Joseph Quarto]

Hi,

This question just came up.  On a building we have with lots of Equity (balance mortgage is $56k)

I am looking to free up some cash ($250-300k) for a future 2016 purchase, but wanting to get all approved now. Should I follow thru with the bank Refi & just "bank" the $ until next year OR get a LOC for about the same amount and avoid some closing costs & carrying charges until I make the purchase? This way the existing mortgage will continue to go down.

Pros/Cons, other than the obvious Rates may continue rising. Is LOC interest rates deductible?

Thanks,

Joseph Q