HELOC or Cash Our Refi?

[Kat Rathell]

In the process of refinancing our primary residence (rates are good), and lender suggests we refi our HELOC as well. HELOC is almost maxed out after purchasing several investment properties this year.

We can

a) refi just the first mortgage and keep the HELOC open, but HELOC has a higher interest rate

b) refi both mortgage and HELOC for a lower interest rate

I am leaning towards a refi for both into one loan, but wonder if I am missing something, where keeping the HELOC open even at a higher interest rate is somehow potentially more beneficial.

Is it? Or is a regular refi mortgage a better choice?

Thanks in advance!