HELOCs: 5 Year length at lower rate vs. 10 years at a higher rate

[Lexie De Stefano]

Hello!

I'm looking at taking out a HELOC on my primary residence (house #1), to purchase house #2 (BRRRR method in a high appreciation/low cashflow area) that I plan to use as my future primary residence. I've been debating about the pros/cons on the different HELOC term lengths because the HELOC on house #1 would probably serve as my main financing mechanism for future properties, and I'd heard that it's more difficult to do HELOCs on an investment property. (Please correct me if I'm wrong!)

There are a few different credit unions I'm looking at that have similar financing structures, so I'm interested in hearing about your recommendations on if it's worth taking out a shorter term HELOC (5ish years) at a lower interest rate, or a longer term HELOC (10ish years) at a slightly higher one. It seems that the credit unions would pay for closing costs, as I don't intend to close out the HELOC upon repayment. Welcome your thoughts on if it's worth the higher interest rate for a longer term loan or if it's better to do the shorter one at a better rate, keeping in mind that house #1 would no longer be my primary residence.

Thanks in advance for your help! :)