I'm considering doing a re-fi or a HELOC on an investment property. I'm currently at 4.5% and I'm 2 years into my loan. The house is worth 800K and I owe 464K.
A straight re-fi is 3.375% and a cash-out is 3.625%. However, they both require 1.825% points, which is $10,950 on a 600K loan. It would be another $7,000-$9,000 for the other closing costs, so total closing costs would be $18,000-$20,000. Ouch.
Bank of Hawaii is offering 3.54% fixed HELOC for investment property. They do 80% LTV on first position and 70% LTV on second position. It's about $2500-$3000 in total closing costs.
If I did a first position, my payment for PITI would immediately drop from 2,444/month to 2,094/month, a difference of $350/month. However, I am not sure if the interest on the HELOC is tax deductible against the rental income.