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HELOC vs Cash-Out Refinance Calculator (2025)
Compare the true cost of a HELOC vs cash-out mortgage refinance for accessing your home equity. See monthly payments, total 10-year cost, and break-even analysis.
HELOC Option
Cash-Out Refi Option
Recommendation
HELOC
Lower 10-year total cost
$375
HELOC Monthly
$877
Refi Monthly Increase
6000 months
Refi Break-Even
Based on your inputs, the HELOC is the lower-cost option over 10 years. However, HELOC rates are variable — if rates rise, the refi may become cheaper.
Analysis & insights
HELOC wins for 10-year total cost under your scenario. HELOC: $95,000. Cash-out refi: $249,251. HELOC works well when you need flexibility, don't want to touch your existing low-rate mortgage, and can absorb variable-rate risk.
HELOC wins on 10-year cost
HELOC's lower closing cost + interest-only flexibility produces lower total cost in this scenario.
Risk & benchmark gauge
Current band
Decisive
61.9% cost difference
Industry benchmarks
- 10-year HELOC total cost$95,000
- 10-year refi total cost$249,251
- HELOC interest-only payment$375/mo
- Refi total monthly$2,077/mo
- Refi payment INCREASE$877/mo
- Break-even on refi closing500 years
Key insights
HELOC = variable rate exposure
HELOCs are typically Prime + a margin (currently ~8-10%). When the Fed raises rates, your payment goes up. Stress-test for 2-3 percentage points higher.
Cash-out refi resets your mortgage clock
Replacing a 15-years-in mortgage with a fresh 30-year adds 15 years of interest payments. Total lifetime cost can rise even with a lower rate — keep paying the old monthly.
Lower closing costs
HELOCs typically have $0-500 in closing costs vs $5K-$15K for a cash-out refi. Big advantage if you might not stay long.
Recommended actions(2)
Verify the rates lender will actually offer you
High priorityThese calculations assume rate quotes. Real underwriting uses your credit score, LTV, and reserves. Pre-qualify both products before committing to either path.
Stress-test the HELOC for higher rates
Medium priorityAdd 2-3 percentage points to the HELOC rate and re-run. If you can't comfortably handle the payment at that level, choose the refi for predictability.
Tap Your Home Equity
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This tool is for educational purposes only and does not constitute financial, tax, or investment advice. Consult a qualified financial professional for advice specific to your situation.