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No. of Recommendations: 1
CMF Fuskie,
In this market I personally would take the gamble on the adjustable with the longer payback.
I did however have 2 questions on your thoughts on using the HELOC for repairs or improvements vs using the Emergency Fund.

1.When you apply for the HELOC, do you have to take the funds now or can you hold off on that as a rainy day sort of emergency fund? Use your cash for repairs and keep the HELOC on the side should unexpected future expenses crop up.

Going this route means you would have to be disciplined enough to not use the HELOC for non-emergencies.

This route would allow you to do repairs, and repay yourself into the emergency fund at 0% interest.

If you could defer the HELOC withdrawal but be sure that it would be there if needed then this is an option.

2. What percentage of your HELOC and or Emergency Fund Cash is needed for the repairs. When locking in a HELOC be sure you have some extra buffer for getting more cash in case of cost overruns. Don't ever want to be in position of shopping for a HELOC when Credit Score took a recent hit.

Good Luck in whichever way you go.

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