Refi vs HELOC for 1st time house hack

9 Replies

๐Ÿ‘‹๐Ÿพ. Newbie here! I'll be house hacking starting February 1st. Working on upgrades, now. Which would be better to finance ... Refinancing for cash out or HELOC? Thank you, in advance ๐Ÿ˜Š

Assuming you are staying in the property for awhile cash-out refi is probably your best bet. HELOC's typically have variable rates that can jump up if you have the lien for awhile. Rates are obviously very low now but 2009 still gives me nightmares.

Downside of cash-out refi is, typically closing costs are more than HELOCs but rates tend to be much better for cash-outs. 

Hope this helps!

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@Andy Garretson thank you for your reply! It's not going to be a long-term hold. I plan on moving on to my next house hack February of 2023... Do you still feel that way financing is a good idea? I appreciate you!