Home Loan Vs. HELOC?

2 Replies


I've found a deal I'm interested in and am planning to finance it using the equity in my primary residence (currently, I have no mortgage on it so this would be the only loan against it). I thought a HELOC would be better than a home loan because it is "reusable" but the variable interest rates make me nervous given the current rate environment. My question is, is it worth taking on the risk of variable interest rates to have to flexibility of a HELOC (i. E. As soon as I refinance this first property, the full amount of the HELOC will be available to use again and will not hold up future deals) or is the loan with the fixed rate better, despite the fact that I have to reapply every time I want a new one, given we are currently in a "rising" interest rate environment?

Heloc all day. Hyper inflation mitigation steps are on the governments watch list. Interest rates will be controlled and steady for the next few years. Will there be increase? Yes, but anything drastic is still a few years out. 

I have multiple HELOCs. I love the flexibility and understand the interest rate risk. I can use them over and over again like a credit card basically. I never consider a Loan over a LOC.

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