best refinancing strategy to re-invest ?

Question

Hello all! Me and my family currently live in a single family with a debt of $50k left of mortgage, if we sell the home we can lock in a good 150K sale price since the market in my area has gone up really well. Im here to ask because the rates are low where I'm at, Mesquite, TX, would re-finance with a lower rate and a higher appraisal value  straight from a lender be the best option for more cash to re-invest ?? or would a Home equity line of credit be a better option ?? what's a good way to break down the cost differences for me at home to present it to my family ? that you for all the help !

Matthew Irish-Jones · Answer

@Jesse Barahona there are pros and cons to both.  A HELOC will work like a low interest credit card that you can use, repay, use and repay as much as you like.   A refinance will be no strings attached money but, you will have leveraged most of your equity.

If your home has a lot of equity in it and you can refinance to a lower interest rate, and you plan to keep living there, that may be the best option.

Jesse Barahona · Answer

yes sorry I left that out! yes we do plan on living here for the coming years, and if we would to move out lets say 5 years we will definitely keep this home as a rental, whenever the time is right to move out of course, we have no date planned for that.