which is the better choise?

[Joseph Rodney]

I am completely new to HELOC's a dummie , below are the choices i have, I plan to borrow 125.000 to pay off my mortgage of 88.000 and have some leftover for upgrading. I would like to pay the loan off as quickly as possible. The Bank is Wells Fargo. your advise would be appreciated.

Thank You

Joseph

Fixed rate for 12 months: 3.115%

After the initial 12 months the rate defaults to a variable rate of the prime rate (currently 3.75%) + a fixed margin of .5% totaling 4.25%.

Fixed rate for 13 - 180 months: 5.74%

After the initial 60 months the rate defaults to a variable rate of the prime rate (currently 3.75%) + a fixed margin of .5% totaling 4.25%.