Which cash out option

[seriously1]

Two choices for our cash out refi

Cash out / 31,000
Cost of loan -5700
Plus we will need to get a heloc for 10k in order to get amount for project (Say we took three years to pay the heloc off)
Or
Cash out / 410000
Cost of loan 13000
We would not need to get a heloc.

How do I figure out which makes more sense?

Thank you for your insight!

[elcjet]

Is there a reason you can't do a HELOC for the entire cost of the project? The fees are so much lower and you typically have 10 years before you have to either pay it off or refinance it.

I think the cost of these loans are very high. Are you improving your current loan's interest rates? But without any other information option 1 is way better than option 2. Getting a HELOC is much less expensive than the extra $7300 you will pay for the $41K cash out.....

[ohgillian]

Agree with elcjet that we need more info. What is in the cost of the loans. Is the cash-out the whole purpose of the refi or are there other benfits? What would the HELOC rate be?

[seriously1]

Thanks!
We are going from a 3.25 to a 2.87 loan.

[seriously1]

The heloc would be about three tied to prime