Refinance or Home Equity Loan?

My brother and I are in our mid to late 20’s and own a 2 unit home valued at approximately $ 75,000 free and clear. We have a 30 year mortgage (out on another home valued at approximately $ 40,000) at a fixed rate of 7.4395%. We have been paying on this loan for almost 3 years. (PMI of $ 20 a month). Each of these are rental units.

I know mortgage rates are at an all-time low slightly under 5%. Would it be better for us to refinance our current mortgage or take out a home equity loan and use it to pay it off.

Please factor into the equation that I plan on purchasing another property in the next year or so which will be my primary residence.

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