HELOC vs Cash-Out Refinance Calculator
Compare your home equity options and find the break-even point. See which option saves you money based on your specific situation.
Your Mortgage & Home Details
$
$
$
For renovation, debt consolidation, or other expenses Loan Options
Variable rate - check current offers
$
Typically 2-5% of loan amount Most resets to 30 years
Comparison Results
HELOC Option
Monthly Payment -
Combined Monthly -
Total Interest (10yr) -
Closing Costs ~$500 - $1,000
Cash-Out Refinance
Monthly Payment -
Monthly Change -
Total Interest (10yr) -
Closing Costs -
Break-Even Analysis
Break-Even Point -
Cost to Break-Even -
0 120 months
10-Year Cost Comparison
| Metric | HELOC | Refinance | Difference |
|---|
Risk Analysis
Loan-to-Value Analysis
Rate Stress Test (+1%)
Understanding Your Options
🏠 HELOC (Home Equity Line of Credit)
- Pros: Lower closing costs, only pay interest on what you use, flexible access to funds
- Cons: Variable rates can rise, payments may increase after draw period
- Best for: Ongoing projects, emergency funds, short-term borrowing needs
🔄 Cash-Out Refinance
- Pros: Fixed rate, predictable payments, potentially lower rate than HELOC
- Cons: Higher closing costs, resets mortgage term, loses rate if rates drop
- Best for: Large one-time expenses, when current rate is near refinance rate
⚖️ Break-Even Point
The break-even point is when the total cost of refinancing equals the total cost of a HELOC. If you plan to stay in your home past this point, refinancing may save money. If you might move sooner, HELOC is often cheaper.
Disclaimer: This calculator provides estimates for informational purposes only. Actual rates, terms, and costs vary by lender, location, and creditworthiness. Consult with licensed financial professionals before making borrowing decisions.