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Cash-Out Refinance vs HELOC Calculator
Compare a cash-out refinance to a HELOC for the same cash need. See payment change, first-year cost, and the LTV / CLTV ratios that result from each option.
Property & current mortgage
Cash-out refi terms
HELOC terms
Cash-out refi
$2,411/mo
vs previous $1,170/mo
+$1,242/mo at LTV 67%
HELOC
$708/mo
interest-only on drawn
CLTV 66%
First-year cost difference
$14,152
HELOC saves
Decision framework
Cash-out refi resets your entire mortgage at the new rate — bad if your existing rate is much lower than today's. HELOC adds a second lien at variable rate but leaves your first mortgage alone.
Use cash-out refi when: rates have dropped vs your current mortgage, or you want a fixed payment on the cash for 30 years. Use HELOC when: your existing first mortgage is at a much lower rate than today's, you'll repay the cash quickly, or you want flexibility to draw and pay down repeatedly.
How to Use
- Enter property value, current mortgage balance, current rate, and the cash you need.
- Enter the cash-out refi rate, term, and closing costs.
- Enter the HELOC rate and setup fees.
- Compare new monthly payments, first-year costs, and resulting LTV/CLTV.
Frequently Asked Questions
Why is cash-out refi more expensive when my current rate is low?
You're not just borrowing the new cash — you're refinancing the entire existing balance at today's rate. If you're at 4% and today's rate is 7%, you give up the great rate on your existing balance just to access the new cash.
When does a HELOC make more sense?
When your existing first mortgage is at a much lower rate than today's, when you'll repay the cash within a few years, or when you want flexibility to draw and pay down repeatedly. HELOCs preserve your low first-mortgage rate.
Are HELOC rates fixed or variable?
Variable for almost all standard HELOCs — usually prime + margin. Some lenders offer fixed-rate conversion options on portions of the balance. Read the disclosure carefully.
What about a home equity loan instead of HELOC?
A home equity loan is a fixed-rate, fixed-term second mortgage. Higher rate than HELOCs typically, but you get payment certainty. Use the HELOC vs Home Equity Loan calculator to compare.
Related Calculators
Cash-Out Refinance Calculator
Standalone cash-out refi calculator.
HELOC Calculator
Standalone HELOC payment and balance calculator.
HELOC vs Home Equity Loan Calculator
Compare HELOC to a fixed home equity loan.
Bridge Loan vs HELOC Calculator
Compare bridge loan and HELOC for short-term gap financing.
Refinance Break-Even Calculator
Months to recover refi closing costs.
Loan-to-Value Calculator
Check the LTV cap on cash-out refis (typically 80%).
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