Cash out Refi vs HELOC

[John Baker]

Hello everyone. 

I’m currently looking to either cash out refi or get a Heloc on my property that’s fully paid off. I’m looking to get anywhere from 150-160(based on 70%)

I was quoted either 3.25% on a 30 year cash out refi with about 11k in closing costs or a 3.25% Heloc with no closings costs.(I understand that prime rates can change at anytime however I calculated in the 11k savings from not having to pay closing costs)

My plan is to use the money to rehab a property and use my personal money to purchase the property. I am estimating to paying off this loan in 5-6 years. What would be my best option and why?

[John Baker]

Originally posted by @Julio Gonzalez:

Welcome aboard, John! You found the right place for information.

-Julio

Thank you Julio, looking to get informed before I make my decision.