HELOC options comparision

[Karan More]

Hey Guys,

I am still new to real estate and how to choose HELOC's. I did my work on checking some local banks and their information on HELOC and all it comes down to two main points :
How much LTV
How much APR
Overall 10year draw period and onwards repayment period is there. No other cost of process. Taking 4-6weeks to complete.

Bank1 gives me 7.99% for 1st year and then 8.5% later onwards.
Bank2 is giving me 9.5-10.5% APR with 85% LTV. 

Example:
Bank1 gives 80% LTV gives me 50k as HELOC on 7.99% APR for 12months and then 8.5% APR afterwards.
Bank2 is giving 85% LTV that is 63k HELOC on 9.5% APR. 

So difference is coming out as 13k. 
What should be considered over here, better APR or better HELOC LTV amount to choose?
What is good in terms of getting HELOC, better APR or Better LTV or both?

[Conner Olsen]

Quote from @Karan More:

@Matt Devincenzo I agree. I plan to use HELOC for buying duplex as house hack and then refi to cover it@Andrew Postell

@Andrew Postell 

the thing is that bank1 is giving me lower rate for short term. I am planning to use HELOC for short term. Only thing is that bank2 gives MORE 13k which looks convincing. So just need guidance on what if someone experienced would have choose?

Do you need the extra 13k? How will this HELOC impact your DTI? How will the different interest rates affect your DTI?

Here's some questions I would ask myself about the house hack: Is the cash flow going to cover the interest payments on the HELOC? When are you planning on refinancing? Will you be going into another owner occupied loan? How will you gain the increased equity to get a refinance? What is your new LTV going to be on the house hack? What's the cash flow pre and post refinance?