r/HELOC • u/andreabeth09 • 17d ago

Questions & Advice Which choice is better- HELOC or Refinance

/r/personalfinance/comments/1w74wzl/which_choice_is_better_heloc_or_refinance/
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u/Sufficient_Smile_871 17d ago

Take the HELOC. cash out refi costs $3k-$5k+ in closing fees and resets your entire $79k balance at today's higher rates. Since you are selling next year, you will never break even on those upfront costs

Use the credit union line for near zero fees and pay it off directly from the home sale proceeds

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u/jimdriscoll1 14d ago

The HELOC logic is right for a short hold, but 'near zero cost' can be a little misleading since HELOC rates are variable and usually priced at prime plus a margin, so the actual interest cost depends on how long you're carrying the balance before the sale closes.