HELOC vs Home Equity Loan vs Cash-Out Refinance Calculator

Home equity borrowing details

Enter your current mortgage, the cash you want, and the terms you are seeing for each option. The calculator keeps the existing first mortgage in place for the HELOC and home equity loan, then replaces it for the cash-out refinance.

Plain-English estimates CLTV warning bands No personal info required Affiliate links disclosed

Current home and mortgage

Home value ($)

Current mortgage balance ($)

Current mortgage rate (%)

Current principal and interest ($)

Remaining term (months)

Desired cash amount ($)

Expected holding period (years)

Home equity loan

Fixed rate (%)

Term (years)

Closing costs / fees ($)

HELOC

Starting variable rate (%)

Interest-only draw period (years)

Repayment period (years)

Closing costs / annual fees ($)

Percent drawn immediately (%)

Rate shock to test (+ points)

Cash-out refinance

New first mortgage rate (%)

New term (years)

Closing costs / points ($)

Results

What this means in plain English

Warnings to check before applying

Related calculators

Methodology

CLTV equals current mortgage balance plus the new equity borrowing, divided by estimated home value.
HELOC draw-period payment is interest-only on the drawn balance. If the holding period extends beyond the draw period, the calculator switches to an amortizing repayment payment for the remaining balance.
Home equity loan and cash-out refinance payments use the standard fixed-rate amortization formula.
Holding-period cost equals interest paid plus fees, and for cash-out refinance includes the incremental interest cost versus keeping the current first mortgage.
Full payoff cost equals all scheduled loan payments plus fees. It includes the remaining current mortgage for HELOC and home equity loan paths.
Assumptions: no prepayments, no taxes or insurance, no tax deductibility, no credit-score effects, and a flat HELOC rate except the separate shock warning.

For educational purposes only. Not financial advice. Home equity borrowing is secured by your home.

Frequently asked questions

Is a HELOC better than a home equity loan?

A HELOC can be better for flexible borrowing or staged projects, but its variable rate can make payments rise. A home equity loan can be better when you need one lump sum and want a fixed payment.

When is cash-out refinancing risky?

Cash-out refinancing is risky when it replaces a low-rate first mortgage with a much higher new rate, extends repayment over a new long term, or pushes your combined loan-to-value ratio near lender limits.

What CLTV is too high for home equity borrowing?

Many lenders become more cautious above 80% CLTV and may cap borrowing around 85% to 90%, depending on credit, income, property type, and market conditions.

Does this calculator include taxes or insurance?

No. It compares loan payments, fees, interest, remaining balances, and payoff costs. Property taxes, homeowners insurance, tax deductibility, credit score effects, and future home values are not included.