Cash out refi. Or HELOC

[Joshua Bailey]

Looking to get down payment for rental property. I thought I was all set wanting to get a HELOC, but my credit union came back and gave me a quite on a cash out refinance. My current payment on my mortgage is $874. If I do the cash out refinance I would have a fixed rate at 3.9% opposed to the 4.6% I have now. Payment would stay about the same adding the 20k for down payment. I've only had my mortgage for 4 years. If I just do the refinance payment goes down to $760. The credit union pays the closing cost for me on the cash out refinance, but not the HELOC. Which you you prefer, a HELOC for the 20k or cash out refinance at these terms?