Financing Question ~ reducing interest on a second loan

[Pixel Rogue]

Hello all.

I have a second loan on an investment property. Interest rate is considered pretty high at this point (6.5%) and am aiming to get it into the 3s.

Option 1: Refinance with the bank ~ though the amount isn't huge, policy will likely require appraisal etc etc. Bank has not been 'keen' on the refinance of their own loan.

Option 2: There is an unused HeLOC on primary residence. Interest is good and easy to lock in. Very comfortable writing off the second w/the Heloc, but the concern then comes with taxes (both annual tax deductions for interest, and in the even the property gets sold it might look that amount on the second loan does not exist and that amount (that moved from one loan to another) would be considered profit and taxed accordingly.

Any other options anyone can think of that would not require a full refinancing? Oddly enough I am refinancing that same property however given how that bank (different bank) is refinancing the costs would be much much higher for a cash out to roll them together.

TIA for any ideas or thoughts...