Refinance from FHA + HELOC for investment property

[Amber Golson]

I was first stuck on getting HELOC on my primary residence to use as a downpayment for an investment property (long or short term rental)

I talked to a few lenders and have gotten an option to refinance out of my FHA loan and get a HELOC with the equity. Is this a horrible idea? Should I stick to my FHA & avoid additional fees?

loan details

• Original loan: $176,000 at 3.25%
• refinanced loan: $159,000, (no PMI)
• .75 origination fee, $1600 processing, $900 tax/title
• Free refis for life!
• HELOC: $43,000 at 5.25% - 15 year draw

Orginal loan