HELOC vs. Cash-Out Refinance Calculator
Need cash from your equity? Two very different ways to get it. Compare the monthly payment and the 10-year interest cost of each — they rarely crown the same winner.
Rates are your estimates — this calculator publishes no rates. Your first mortgage is modeled on a 30-year schedule for a like-for-like comparison.
Cheaper monthly payment
Cash-out refi
But compare the 10-year interest cost before you decide — the cheaper payment isn't always the cheaper loan.
HELOC
Total monthly (1st mtg + HELOC)
$2,659
Interest over 10 yrs
$269,925
Cash-out refi
New monthly payment
$2,528
Interest over 10 yrs
$242,497
- Lower 10-year interest cost
- Cash-out refi
- Combined loan-to-value
- 88.9%
Important: All calculations on this site are estimates for educational purposes only and do not constitute a loan offer, approval, or commitment to lend. Your actual rate, payment, and terms depend on credit approval and will be provided by your loan officer.
How this works
- HELOC side is simplified: a 10-year interest-only draw period on the cash amount, then amortizing payments for 20 years. Real HELOC rates are variable — this model holds the rate constant, which understates the risk.
- Cash-out side rolls your balance plus the cash into one new 30-year fixed loan. You give up your current rate on the entire balance — painful if your current rate is lower than today's.
- Combined loan-to-value above 80% may add PMI or limit your options — check before you count on it.
Equity decisions have real tradeoffs — talk it through with me before you sign anything.