What is better cash out refinance or Heloc on property ?

Question

I have a rental for 10 years. I Want to get money of it to buy another one. What is better strategy cash out refinance or heloc loan?

Account Closed · Answer

@Oleksandr Ivanovskiy

Generally a HELOC is better for short term needs since the interest is higher

Chris Teti · Answer

First I would go with Business LOC's. But aside from that I would use a HELOC. You are still using the equity in your house, but you aren't paying interest if you aren't using it. If you do a cash out refi, you are not paying interest on all of it for the term of the mortgage (20+ years). Plus HELOC's usually don't cost anything to get where a cash out refi will cost you closing costs.

Oleksandr Ivanovskiy · Answer

@CJ M. Thank you.