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Combined Rate

HELOC / HELOAN vs Cash-Out Refinance

Your first mortgage has a low rate you don’t want to lose. See whether keeping it and adding a second lien beats replacing everything with a cash-out refinance.

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Your Situation

Home Value: $400,000Your home's current appraised value. Used to check your loan-to-value (LTV) — most HELOCs cap the combined LTV around 80-90%.
$100K$1.5M
Current Mortgage Balance: $250,000What you still owe on your first mortgage. This is the balance you'd keep at its low rate if you choose the HELOC/HELOAN path.
$0$1M

Current LTV: 62.5%

Current Rate: 3.5%The interest rate on your existing first mortgage. This is the rate you keep if you add a HELOC instead of refinancing.
2%8%
Years Left: 28 yrYears left on your current mortgage. The payment is computed over the remaining term, not the original 30 years.
530
Cash Needed: $50,000The cash you want to pull out of your equity — for renovations, debt payoff, investments, or a second property.
$10K$300K

Combined LTV: 75.0%

Option A — HELOC / HELOAN (keep first mortgage)

HELOC Rate: 8.4%The rate on the new second lien. HELOCs are usually variable (prime + margin); HELOANs are typically fixed. Enter your best quote.
5%12%
HELOC Term: 20 yrRepayment term of the HELOC/HELOAN in years. HELOCs often have a 10-year draw + 20-year repayment; HELOANs are commonly 15-30 years.
1030

Current lender quotes ($50K)

Tap a quote to load it. Rates as of Oct 2026, subject to change. APR shown in lender sheet includes fees.

Option B — Cash-Out Refinance (replace everything)

Cash-Out Rate: 7%Today's rate for a new first mortgage cash-out refinance. This replaces your entire loan, so your low rate is gone.
5%10%
Cash-Out Term: 30 yrThe term of the new cash-out refinance loan. A longer term lowers the payment but increases total interest paid.
1530

This compares P&I only — property taxes and insurance are identical in both scenarios since the home doesn't change. Read the full guide →

Your blended (combined) rate

Keeping your 3.5% first mortgage and adding a 8.4% HELOC on $50,000 gives you a weighted-average rate across both loans:

Combined rate (Option A)

4.317%

vs 7% cash-out refinance (Option B)

✓ Your blended rate is 2.683% LOWER than the cash-out refinance rate. Keeping your low first mortgage pays off.

Side by side

Option A: HELOC/HELOAN

Rate4.317%
Loan$300,000
Payment/mo$1,599
Total interest$195,912

Option B: Cash-Out Refi

Rate7%
Loan$300,000
Payment/mo$1,996
Total interest$418,527

Equity check

Available equity$150,000
After cash-out$100,000
Combined LTV75.0%

The verdict

Monthly payment

HELOC/HELOAN wins

$397/mo cheaper than cash-out refi

Total interest

HELOC/HELOAN wins

$222,614 less interest over the life of the loans

Keeping your 3.5% first mortgage and adding a HELOC is the clear winner — lower payment AND less total interest. Your low rate is worth protecting.

⚠ All results are estimates only and do not constitute a loan commitment. HELOC rates are often variable. Consult with a licensed mortgage professional for personalized guidance.

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