Use a HELOC to buy investment?

[Amber Hagen]

I own my home outright and I’m wondering if using a Heloc to buy investment property is a good idea.

I do have cash in savings a d investment accounts too. 

Please help. Thanks 

[Patrick M O'Neal]

Interest rates right now are incredibly low. You could refinance your home and use that equity in order to purchase your next investment. That interest rate will certainly be lower but you will have more closing costs compared to getting a heloc. HELOCs are variable and  follow the prime rate but have like no closing costs. I guess it depends on how long you would like to have the loan. If it were short term, I’d go heloc. Long term, a big cash out refi.