Line of credit or cash out refinance ?

[Tara Jenkins]

Hi, my husband and I bought our 2 flat which we house hack about 6 years ago. Between appreciation and work we put into it we definitely have equity in it. We were discussing rehabbing our first level and decided to get a line of credit in order to pay for the rehab. Now, we decided holding off on the rehab and putting the money towards a multiplex. Should I call the bank and switch from a line of credit to a cash out refinance? I don’t believe it is too late to do that since we only had our appraisal this morning. Thoughts?

[Nathan Gesner]

I prefer the HELOC because you don't pay interest on it until you actually take the money out. Then you can pay it off and use it again in the future.