with the skyrocket high interest rate shall I borrown HELOC ?

[Dong Yan]

Hello Everyone,

with the skyrocket high interest rate ,shall I borrow home equity line of credit or the convential mortgage to buy the investment property. The loan amount I need is really small about 250K which I have it with my home equity from my primary residency?

some background about my investment portfolio: only small loan<than 500K with my primary residency, no loan for all other investment properties.

If I use Home Equity Line then I have the fix rate 2% lower than the conventional loan with 5 years but the Equity line will change to adjustable rate after 5 years.

In my case which one will benefit me or save money? Borrow the conventional loan for 30 years with the high mortgage rate or borrow the line of the credit.

I am plan to pay it off in 5 years.

In addition , what is the difference between home equity line or home equity loan, in my situation which one shall I borrow?

THank you in advance!

Stella