Bank offering me two choices which to choose?

Question

Getting a property through equity in my home. The new property I want to get is 300,000 I will be putting 20% down.

Option A) They will give me 80,000$ HELOC and 2.39% x 4 year term amortized for 30 yeaars for the 240,000$ mortgage after paying with downpayment.

Option B) They will give me 150,000$ HELOC and 2.49% x 5 year term amortized for 30 years for the 240,000$ mortgage after paying with downpayment?

My gut is telling me to go with option B so I can use that as leverage to get even more properties. However is that 0.1% interest a huge deterrent lol. I may be being a bit paranoid on this question I realize, but I rather ask then make a stupid mistake.

Yousef Reda · Answer

@Mike Dymski trying to grow my portfolio as safetly as possible. I am going with option B. Thanks for your suggestion . The 0.1% interest difference will not make me pay significantly more over 5 years in interest. I actually went ahead and calculated out the difference in option A and B in terms of interest and its really only $1000 difference. This 1000$ will allow me access to 70,000$ more equity in my pocket. Plus it gives me a good buffer for cash reserves if needed on the property I will purchase. So I think its not a huge cost over a 5 year span.

Mike Dymski · Answer

I'd recommend determining your REI strategy first and designing the financing structure that best fits it rather than the opposite direction.  With having some available equity, you are in a good spot.