Compare Options
HELOC vs. cash-out refinance
Both let you tap into your home equity, but they work differently. Compare the two options side by side to find the right fit for your goals.
Side-by-side comparison
| Feature | HELOC | Cash-Out Refinance |
|---|---|---|
| How it works | Revolving credit line — draw as needed | Replace your mortgage with a larger one |
| Interest rate | Variable rate | Fixed or adjustable rate |
| Monthly payments | Interest-only during draw period | Fixed principal + interest |
| Best for | Ongoing or flexible expenses | Large, one-time cash needs |
| Closing costs | Typically lower | Standard mortgage closing costs |
| Your existing mortgage | Stays in place (second lien) | Replaced with new mortgage |
Which is right for you?
Choose a HELOC if...
You want flexible access to funds over time, prefer interest-only payments, or don't want to refinance your existing mortgage at a potentially higher rate.
Learn about HELOCs →Choose cash-out refi if...
You need a large lump sum, want a fixed rate, or can refinance to a rate lower than your current mortgage. Great for debt consolidation.
Learn about cash-out →Not sure?
Talk to one of our loan consultants. We'll help you compare your specific numbers and find the option that saves you the most.
Contact us →🏡
Home Equity Calculator
See how much equity you can access from your home
$
$
70%95%
$200,000
Total Equity
40%
Equity Percentage
$100,000
Available to Borrow
Home value$500,000
Mortgage balance$300,000
Combined LTV80%
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