Cash out refi vs. HELOC on primary residence
Looking for advice on financing my first rental property. I have a significant amount of equity in my primary residence. Am I better off doing a cash out refinance on my primary home or a HELOC?
Mortgage details:
Appraised value: $380K
Loan amount: $166K
Interest rate: 3.875%
Term: Year 6 on a 20 year
Cash out refi quote:
New loan amount: $266K
Interest rate: 4%
Term: 30 year
HELOC quote:
HELOC amount: $100K
Interest rate: 4.5%
Terms: 10 year draw + 20 year repayment