Good rate for Cash Out Refinance..?

[Jared McCullough]

I am currently looking at options for financing after a cash purchase. The finance would account for $30k which should be around 50-60% LTV depending on what the appraisal comes back at. The following are the (2) I have found at the moment. Do either of them sound typical or like good deals or should I keep looking?

Option 1:

Personal HELOC through Credit Union at 4.85% for 10 year loan

No application or appraisal fees

The deed can't be quitclaim to LLC

Fixed Interest Rate

Option 2: 

Cash Out Refinance through commercial bank at 5.4% for 10 year loan

Estimate fees at $725

The loan and deed will be issued to LLC

The interest rate resets every 5 years

At the moment the net difference is about $1500 over the course of the loan in which one is issued to the LLC and the other is issued to one of the members of the LLC through a personal note. Based on research neither seemed like bad options but wanted to hopefully get advice from someone who has done this more than myself.

Also any advice on where I could find better rates is appreciated.