Want to Pull Cash Out of 100% Owned Property - HELOC or Mortgage?

[Steven Thoma]

Hi all, I recently purchased a SFR 100% cash to expedite the process. I’d now like to pull money back out to use for more investing. Which strategy would be better, a HELOC or a mortgage? My lender has offered the following: Mortgage - pull out 85% equity @ 4.9% over 25 years HELOC - 4.75% (equal to the prime). Per my discussion with him, interest is due monthly based on the balance of the loan, and the HELOC is renewed annually. I’m not sure I fully understand how the payments for the HELOC would be calculated. Any insight into this would be greatly appreciated. Thanks!