Should you take a HELOC or refinance?
Enter what you owe and what you need. You will see what each option costs per month, how much of your equity stays yours, and which one leaves more money in your pocket.
Run the numbers
HELOC
Keep your first mortgage, add a second loan behind it.
- First mortgage payment
- HELOC draw (interest only)
- Payment after draw ends
- Closing costs (4.99%)
- Total drawn with costs
- Total interest, both loans
Cash-out refinance
Replace your mortgage with one bigger loan at one rate.
- New loan amount
- Rate and term
- Payment
- Closing costs rolled in
- Break even vs the HELOC
- Total interest, life of loan
What you gain
These are estimates. A quick review of your credit and income will confirm the rate you actually qualify for.
How this is calculated: the HELOC path assumes a 10 year interest-only draw followed by a 20 year repayment, with your first mortgage left in place. HELOC closing costs run 4.99% of the cash taken out and are added to the amount drawn, so the cash you asked for is the cash you receive. The refinance path assumes one new fixed loan covering your balance, your cash, and closing costs. Both paths pay off the debt you listed. Rates, limits and costs shown are editable defaults, not quotes. Actual terms depend on credit, income, occupancy, property type and lender guidelines. This tool does not create a loan offer or a commitment to lend.
