Finance · Refi / Equity
HELOC vs Cash-Out Refi
Compare monthly payment and interest tradeoffs between HELOC and cash-out refinance.
Last reviewed: February 18, 2026
Guided Flow
Next steps
Refi
Open HELOC payment
Model draw and repayment phases with clear assumptions.
Refi
Open cash-out refi
Compare new loan payment and upfront closing costs.
Guide
Read: HELOC vs cash-out
Review key tradeoffs before choosing an equity path.
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What this calculator does
Compare monthly payment and interest tradeoffs between HELOC and cash-out refinance.
How it's calculated
- Inputs are validated before running the calculator-specific compute() function.
- Core math is deterministic and implemented in src/lib/calculators/heloc-vs-cashout-refi.ts.
- Results are recalculated instantly as values change and are shareable via query parameters.
- Disclosure assumptions and limitations are shown on-page for decision context.
Example
Example scenario: Home value = 650000 USD; Current mortgage balance = 380000 USD; Current mortgage rate = 5.75 %; Current term remaining = 24 years. Sample output: Cash-out monthly payment: $2,801.51
Common mistakes
- Using optimistic rates or appreciation assumptions without testing a conservative case.
- Ignoring taxes, insurance, HOA, or maintenance in monthly cost planning.
- Treating modeled outputs as guaranteed quotes rather than planning estimates.
- Not comparing at least two scenarios before making a financing decision.
- Skipping professional review for legal, tax, underwriting, or insurance details.
FAQs
Why can HELOC payment change after the draw period?
If interest-only draw is enabled, principal is not reduced during draw. Once repayment starts, payment rises because principal must amortize.
Does this model variable HELOC rates?
No. This estimate holds the HELOC APR constant so the comparison stays transparent.
What does break-even month represent?
It is the month where estimated monthly payment savings from cash-out recover up-front closing costs, based on initial payment difference.
Should I include all refinance fees in closing costs?
Yes. Include lender fees, title, appraisal, and other costs so break-even reflects full upfront expense.
Can this replace lender-specific quotes?
No. It is a planning tool. Use lender disclosures for exact payment schedules and cost breakdowns.