HELOC vs Cash-Out Refinance
If you have a low first-mortgage rate, refinancing everything to get cash can quietly cost a fortune. This compares keeping your first mortgage and adding a HELOC against a full cash-out refinance.
Keep your first mortgage, or refinance it?
Side by side
Keep your first mortgage and add a HELOC (Path A) vs. refinance the whole balance for cash (Path B).
| A | B | Difference |
|---|
Total balance at 1 / 3 / 5 / 10 years
What you still owe under each path.
Total balance over time
Both paths overlaid. Toggle dollars or percent of the starting debt, and the range.
Amortization schedule
Switch between the two paths. Keep + HELOC combines your first mortgage and the HELOC into one monthly view.
| Mo. | Phase | Payment | Interest | Principal | Balance |
|---|
How to read this
A cash-out refinance replaces your whole mortgage with one new, larger loan — so if your current first-mortgage rate is below today's refi rate, you reprice every dollar of that balance at the higher rate, not just the cash you take out. Keeping the first mortgage and adding a HELOC leaves the cheap rate alone; only the new cash carries the higher HELOC rate, giving a blended rate between the two.
The HELOC path usually wins on total cost when your first rate is well below market — but a refi can win on a single payment or when your first rate isn't actually low. We don't hard-code a winner; the numbers decide, and your goal sets the emphasis.
Inputs explained
- First-mortgage balance & rate — what you owe now and the rate you'd keep (or give up).
- Cash you need — drawn on the HELOC, or added to the refinanced balance.
- HELOC / refi rates — defaults track today's averages; edit to your quotes.
- Closing costs — financed into the refi balance (the HELOC path assumes minimal).
Educational estimates only — HelocPilot is not a lender and does not provide individualized advice. HELOC rates are variable; refi closing costs and terms vary. Confirm quotes with your lender.
Compare your home-equity options →
Email me these results — and tell me when rates change the math.
- Independent
- Numbers-first
- Sources cited
- No lender ownership
Estimates only — for general information, not individualized financial advice. Actual rates, payments, and terms depend on your lender and circumstances.