Rental property improvement loan or home equity, what‘s the best?

[Hodari Howard]

These are the options I am getting from my credit union? I would appreciate any opinions and pointers you all can offer.

Respectfully, Hodari 
The first mortgage option that includes closing costs would have a rate of around 3.125% for the 15 year term. You’d be looking at a loan amount of roughly $56,000.00 to cover the closing costs involved as well. The home equity option for the 15 year term is 5.790%. The first mortgage option with the lower rate is slightly more advantageous over the life of the loan, with savings around $4,500.00 ($25/mo). Keep in mind, though, that this option would require a full appraisal, while the home equity option does not.