Cash Out Refinance Versus HELOC

[Russell Thomas]

Should I do a cash out refinance or HELOC. I am in the final stages of a VA assumption, that was gifted to me by a family member with all its equity. The house is in San Antonio and is my stated, Primary Residence. However, I work in the oilfield and spend most of my time in Odessa Texas, at an apartment that I am renting. The balance on the Loan is 40k. The value of the house as is, without improvements is 270k, so that means there is at least 230000 k of Equity in the home. I am a veteran also. I would like to purchase a home in Odessa where I am. Secondly I would like sell the San Antonio house after doing some updates . Should I refinance to conventional loan at closing, and be able to use my VA again in Odessa or should I use a HELOC.

Thanks for your advice

[Jaron Walling]

@Russell Thomas Sounds a great position to be in. What a wonderful gift! 

Given you'll have that equity what's wrong with selling "as-is" or just finding some CASH to finish the updates? If you pull a HELOC or complete a refinance it's going to cost you money. There's closing costs, appraisal fee, and points to consider.

I'd focus on the ROI of "doing some updates" and the strategy behind this property. You want to live in Odessa not San Antonio. You already have a place to live (rental). You wouldn't be contingent on selling it which is a big plus. Unnecessary costs for a cash-out or HELOC doesn't make sense unless you plan to live in the house for a few years.