Get a HELOC or Cash Out Refinance for a down payment?
Hey everyone, in the final stages of deciding which route makes the most financial sense.
We live in Texas and currently House hack a property and are wanting to utilize the equity built up in this home to the next one for a down payment.
Current locked in rate is 2.45% and would be able to cash out 25-45K of equity.
Current offers sit around 5.75-6.315%
Total mortgage payment would go from $1,497 up to $2190 at the highest estimate. We're confident we could get something all in for $1,700-$1,800 and pull out $30K
The other side would be to use a HELOC and use that as a downpayment on the property. Estimates we've gotten sit around 5.99% variable rates of a 40K cash out.
What route would make more logistical sense in order to get the next property in a risk-averse fashion and set yourself up for continued success?