Cash-Out or Home Equity Loan?

[Melanie Rodriguez]

Hello!

I am looking for some advice as to which course I should take: Cash-out refinance or home equity loan?

Home value: $400,000

Mortgage balance: $51,000

Interest rate: 6.125% - Fixed. 30yr.

Monthly payment: $875

I want pull $200,000 from the equity for my first investment property.

Which option would be better in today’s market conditions?

Which would give me the lowest monthly payment possible?

Which option is less risky?

Which is less overall headache?

Thanks so much!