Would It Be Dumb To Pay Off Our Heloc?

My husband & I own a home. We owe $32,400 on it & our interest rate is 4.250%.

We took out a HELOC in order to finish the basement with an added bed & bath & finished living room. Our HELOC is sitting at $58k with a 6.750% interest rate. We were hard for money for quite a while and have been renovating things here and there in our home, to which we decided that the HELOC would be used, and that we would just pay it off when we eventually sell our home. Our family is out growing this home, so it is 100% in our future to sell & upgrade.

We have recently gotten the opportunity to buy into my husbands fathers concrete plant business, and the long term plan is that it will be ours some day down the road. We were gifted $30k from his parents personal finances, which will be going directly to our portion of buying into the business. In total, we are putting $100k into the business. We have the options to-

• take out $70k at 5.6%, and keep our HELOC as is. Estimated monthly payment of $763.16.
• take out $100k at 5.6% & pay off $30k of our HELOC. Estimated monthly payment of$1,090
• take out $125k at 5.6% & pay almost all the HELOC off but <$4k. Estimated monthly payment of 1,362.78.

Personally, due to needing a new house in the somewhat near future, (our kids are 7m, 2, & 6- The two little ones can share a room for some years yet.), I would rather play it safe and just take the $70k out & use that & the gifted funds to total $100k into the business purchase. I feel like its irresponsible and doesn't make sense to take out $125k & pay $1,362.78 per month when we could take out the 70k & pay $763.16 per month and keep our current HELOC payment at $324.74, for a monthly grand total of $1,087.90. As a household we total approx. $110k in income per year. I own my vehicle and my husband only needs to pay off 3k for his truck.

My husband tends to have the "we'll be fine, gotta spend money to make money" mindset, and I am more wary I guess.

I don't really know what I'm doing looking on here for advice. I guess I just need someone to tell me their opinion. TIA