Cash Out Refi Or HELOC...is Better For Tax Purposes
I am looking to draw out some money on my primary residence. I bought the property in 6/02 for 160K and is now worth 215K. I setup a HELOC 2nd and used some of the equity to fix up the property. Now I am looking into refinancing the first and second into a low interest loan.
So, my question is this. Should I
(A) Use my HELOC to take out the rest of the equity and just refinance the full balance of what the house is worth?
(B) Get all the equity in the house out as a cash out refinance?
Are there tax advantages either way?
Thanks
Does either approach offer tax advantages over the other: NO.
the short answer is NO.
Great.....all I needed to know....thanks Dave!