HELOC vs Cash-Out Refi

Equity Access Modeler

Sitting on a low first mortgage? Compare taking a second against refinancing the whole balance, with the blended rate and what each really costs in interest.

Your First Mortgage

The rate you already have — not today's market rate

The Cash-Out

Today's average as of September 23, 2026. Adjust to your quote.

Seconds price above first mortgages

Results

Interest Difference

$70,730.55

Between the two routes, over your chosen horizon

Keeping your 3.25% first mortgage and adding a second costs $70,731 less in interest over 5 years than refinancing the whole balance at 7.25%.

Keep First + Second

$2,881.39

Cash-Out Refinance

$3,410.88

Keep your first, add a second

Blended Rate4.5%
Total Monthly Payment$2,881.39
Interest Over Horizon$105,816.24
Owed At The End$432,932.84

Refinance the whole balance

Rate7.25%
Total Monthly Payment$3,410.88
Interest Over Horizon$176,546.79
Owed At The End$471,893.99

The difference

Second Route Costs Less Monthly$529.49
Total Owed Either Way$500,000

Both routes start from the same total debt, which is why interest over the horizon is a fair measure of cost. Closing costs are not included and generally favour the second lien further. Nor is what happens after the horizon, where a refinance has pushed your first mortgage's payoff further out.

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FAQ

Equity Access Calculator Questions

Straight answers from a California mortgage broker.

Because a cash-out refinance does not just lend you the cash — it replaces your entire first mortgage at today's rate. If you owe $400,000 at 3.25% and want $100,000 out, refinancing re-prices the whole $500,000. A second mortgage or HELOC borrows only the $100,000 and leaves the 3.25% alone, which is usually far cheaper even though seconds carry higher rates.
The weighted average of the rates across everything you owe on the property: each balance times its rate, divided by the total. Keeping a $400,000 loan at 3.25% alongside a $100,000 second at 9.5% gives a blended rate of about 4.5% — still well below today's 30-year. It is the quickest way to see whether the first mortgage is worth protecting.
Not necessarily, and this is the most common way to get this decision wrong. A refinance restarts amortisation over a fresh 30 years, which can lower the monthly payment while raising total interest substantially. This calculator shows both numbers side by side and says so explicitly when they point in opposite directions.
When your current rate is at or above today's market rate, when you are consolidating high-rate debt that a blended-rate view would capture, or when a much shorter refinance term genuinely suits you. Enter your real figures — if refinancing is ahead, this calculator will say so.

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This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.

Reviewed by Joann Ton, Loan Officer (NMLS# 1461031) | Last updated: September 2026