Cash out refi or keep HELOC

[Eric Armstrong]

What would you do in this situation?

I have a HELOC on an investment property worth 140k with an outstanding balance of a little over 40k. The rate is prime +2. I'm not in a position right now to pay off the balance. Would you…….

1. Keep the HELOC and pay down while risking an increase in rates over the next year?

2. Do a cash out refi on the property to lock in a rate and hold or put that cash somewhere so I don’t have to worry about rates going up?

3. Something else I haven’t thought of?

Thanks for your insight.