Which is better Refinance vs HELOC

[John Tomassacci]

I am currently searching for my next multi-family in the Clark Summit, Scranton or Great Bend PA area. I just finished a rehab in Great Bend PA and am trying to decide if I should ReFi or or get a HELOC on my latest Rehab. I currently have a 3% rate on the rehab property. Thanks, any advice is greatly appreciated.

[Sam Horton]

@John Tomassacci - I just took out a HELOC instead of a cash-out re-fi for a couple of reasons. One my interest rate on the residence is locked at 2.8 and with the current rates I'd be around 4 - 4.5% if I were to refi. Two, I like the ability to reuse the HELOC. I am using it to purchase and reno a 2 family, which I will cash-out refi to pay off my HELOC when complete. Then go use the HELOC again on another property. My HELOC is a variable rate so I do run the risk of them increasing the interest on it. There are definitely pros and cons to both options. My biggest pro was keeping the current rate on the house I was pulling the equity from.