Refinance vs HELOC? which one and why?

[Andrea Ochoa]

Hi everyone. My names is Andrea and looking to see what people are currently doing in regards to pulling your money out to move on to the next property. Just did a rehab I already on a property that has 2 homes in one lot and I am debating if I should do a HELOC or a refinance since interest rates are going up and will continue to go up with in the next months.

Also interested to get leads on financial institutions which you have use for either refinance or HELOC. What LTV did you get?

Thanks in advance .
Andrea

[Dan H.]

You did not indicate if owner occupied. HELOC on investment properties are much harder to find than on owner occupied properties.

Most HELOC are variable rate.  I only use variable rate for short term acces to money.   for long term or unknown duration debt I want the loan to have fixed rate.  This is more true when rates are expected to rise. 

 If I was taking a loan to purchase a property, I would consider the variable rate loan only if the plan consisted of a value add and to quickly payoff the original loan (either a flip or refi) .  If I was buying a turn key as a rental, I would avoid variable rate (most HELOC). 

Good luck