What is the difference between a HELOC and a cash-out refinance?

A HELOC is a second lien (or a stand-alone line) on top of the first mortgage. A cash-out refinance replaces the first mortgage with a larger loan and pays you the difference.

Which LTV caps does this use?

It flags cash-out above 80% LTV and HELOC combined LTV above 85%. Lenders set their own overlays — this is not an approval.

Does a cash-out reset the clock?

Usually yes. A new 30-year first mortgage can raise total interest even when the rate looks lower than the HELOC.

Check the box to treat the compare window as interest-only. Principal stays on the line until you start amortizing.

No. Balances never leave this tab.

Runs in your browser · Last updated 7 September 2026

Free HELOC vs Cash-Out Refinance Calculator (US, 2026)

Free HELOC vs cash-out refinance calculator. Compare a home-equity line with a cash-out first mortgage — payment, interest, and 80% LTV. Browser tool — nothing is uploaded.

Home value ($)Current first-mortgage balance ($)First-mortgage rate %Years left on first mortgageCash you want ($)Compare over (years)

HELOC

HELOC rate %HELOC term (years)HELOC closing costs ($)Interest-only HELOC during the compare window

Cash-out refinance

New first-mortgage rate %New term (years)Cash-out closing costs ($)Roll cash-out closing into the new loan

Cheaper path over 10 years (payments + leftover balances): keep the first mortgage + HELOC. Cash-out LTV 51.2% (typical cap 80%). HELOC CLTV 50.0%. Not a lender quote.

Keep first + HELOC / mo

$1,908.53

Cash-out payment / mo

$1,618.09

Monthly difference

$290.44

HELOC path interest

$131,728

Cash-out interest

$155,198

New cash-out loan

$256,000

How to use this tool

Enter home value, first-mortgage balance, rate, and years left.
Set the cash you want and the HELOC rate / term.
Set the cash-out rate, term, and closing costs.
Read monthly payments and which path costs less over the compare years.

Worked example

$500,000 house, $200,000 left at 6% for 25 years, $50,000 cash. A 10-year 8.5% HELOC next to the first mortgage is compared with a 30-year 6.5% cash-out that rolls in $6,000 of closing. The page totals payments plus leftover balances over 10 years. Closing and LTV still decide whether a lender will do either deal.

Frequently asked questions

What is the difference between a HELOC and a cash-out refinance?: A HELOC is a second lien (or a stand-alone line) on top of the first mortgage. A cash-out refinance replaces the first mortgage with a larger loan and pays you the difference.
Which LTV caps does this use?: It flags cash-out above 80% LTV and HELOC combined LTV above 85%. Lenders set their own overlays — this is not an approval.
Does a cash-out reset the clock?: Usually yes. A new 30-year first mortgage can raise total interest even when the rate looks lower than the HELOC.
Interest-only HELOC?: Check the box to treat the compare window as interest-only. Principal stays on the line until you start amortizing.
Uploaded?: No. Balances never leave this tab.