Interactive tool

HELOC vs. HELOAN vs. cash-out refinance

Three ways to turn home equity into cash. A cash-out refinance replaces your whole mortgage at today's rate. A HELOC keeps your mortgage and adds a flexible, variable-rate line. A HELOAN keeps your mortgage and adds a fixed lump sum. Move the sliders to see which keeps your monthly payment lowest.

Home value$500,000

Mortgage balance$300,000

Cash you need$60,000

Current mortgage rate4.00%

Years left on it25 yrs

Today's rates

Cash-out refi rate6.80%

Refi term30 yrs

HELOC rate8.50%

HELOC payoff term20 yrs

HELOAN rate8.00%

HELOAN term15 yrs

HELOC interest-only during draw period

Lowest monthly payment

HELOC

About $53/mo less than the next option. A HELOC or HELOAN keeps your 4.00% first mortgage; refinancing moves it all to 6.80%.

Cash-out refinance$2,347/mo

HELOC (keep your mortgage)$2,104/mo

Existing mortgage $1,584 HELOC $521

HELOAN (fixed second loan)$2,157/mo

Existing mortgage $1,584 HELOAN $573

Est. refi closing costs

~$10,800

Combined loan-to-value

72%

See which one fits you

Cash-out refinance

One new, larger loan pays off your old mortgage and hands you the difference in cash. Your entire balance moves to today's rate — so it shines when current rates are at or below the rate you already have.

HELOC

A revolving line behind your existing mortgage. You keep your current rate and only borrow (and pay interest on) what you draw. Rates are usually variable, often with an interest-only draw period.

HELOAN

A home equity loan: a one-time lump sum behind your existing mortgage at a fixed rate and a fixed monthly payment. Predictable and simple when you know exactly how much you need. HELOAN calculator.