HELOC or Cash out refinance?

[Brad Fletcher]

I'm looking for a good breakdown or sample scenarios of when it's best to use a HELOC versus a cash out refinance on our primary home to purchase an investment property. Given the current market and interest rates.

[Joseph Firmin]

Hi @Brad Fletcher, I'd recommend a HELOC due to the flexibility alone. You may do a cash-out refinance and have cash, but if you haven't found a property, you'll be holding cash that isn't working for you and you have a higher mortgage payment more than likely. You could also look at getting a 1st Lien position HELOC and use it like a checking account to really expedite the equity availability.