HELOC vs. Cash-out Refi...

[Reid Sealby]

Hello friends! 

Last August, I purchased a home in Arvada for ~530k with $0 down using the VA loan. Since then, a recent market value analysis shows us that our house is likely worth $650k-$700k in the current market. I want to take advantage of the massive increase in equity in our home in this short time to purchase another property. From the research I've done I've narrowed down the two most viable options to HELOC or Cash-Out Refi. I'm hoping a few seasoned investors could weigh in on...

Pros/Cons to HELOC. Does taking out a HELOC affect your DTI ratio/credit score drastically? Are all HELOCs variable interest rates? Any recommendations for banks/credit unions in the greater Denver Area that make the HELOC experience seamless?

Pros/Cons to Cash-Out Refi. What kind of sneaky fees are associated with a refinance? What kind of taxes, if any, are incurred? I've had friends explain this strategy as basically "starting over" paying off your mortgage... Since we've only been making mortgage payments for 7 months, this doesn't seem like a huge barrier for me. 

Thanks in Advance for all of your insight, BP Denver friends! Open to other ideas too, HELOC and Cash-Out Refi are just the two I've researched most thusfar.