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Cash-Out Refinance vs HELOC Calculator
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Your numbers
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Monthly payment
Cash-out $2,085 · Keep + 2nd $1,915
Your blended rate of 4.90% is below the 7.11% cash-out rate, so keeping your first mortgage costs less in rate terms.
No credit check to see options. Estimates use principal and interest only.
How this calculator works
There are two main ways to borrow against your home. A cash-out refinance replaces your mortgage with a larger loan and gives you the difference in cash. A HELOC (home equity line of credit) or home equity loan keeps your existing mortgage and adds a second loan on top.
The right choice often comes down to your current rate. If your first mortgage has a low rate, a cash-out refinance re-prices the whole balance at today's rate. A second loan usually carries a higher rate, but only on the new money. The blended rate — the balance-weighted average of your first mortgage and the second loan — shows the true combined cost of keeping your first mortgage. If the blended rate is below the cash-out rate, keeping your mortgage is cheaper on rate.
This calculator shows the blended rate, the combined monthly payment for each option and the total interest each would cost. The cash-out option is modeled as a new 30-year loan with 2% closing costs. The second-loan option is modeled as a fixed payment that pays off the cash over the term you choose; real HELOCs usually have variable rates and an interest-only draw period, so payments can differ from this estimate.
Payment and total interest can point in different directions. A cash-out refinance spreads everything over 30 years, which can mean a lower payment but more interest. A shorter home equity loan has a higher payment but costs less in total. Closing costs differ too: second loans often have lower up-front costs than a full refinance.
Worked example at this week's rates
You owe $250,000 at 4% with 25 years left and need $60,000. A cash-out refinance to $310,000 at this week's 7.11% average costs $2,085 a month and $440,740 in total interest. Keeping the 4% loan and adding a 15-year second loan at an illustrative 8.63% gives a blended rate of 4.90%, a combined payment of $1,915 and $193,022 in total interest.
The 8.63% second-loan rate is an example input (PMMS average plus 1.5 points), not a published average — enter your own quote.
PMMS is a national purchase-mortgage benchmark, not a refinance quote, so your own offer may be higher or lower.
Estimates only. Default rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Payments are principal and interest only. reficalculator.com is not a lender or broker; see how we calculate.
Frequently asked questions
- Is a HELOC cheaper than a cash-out refinance?
- When your current mortgage rate is well below today's rates, keeping it and adding a HELOC or home equity loan often costs less. Compare the blended rate with the cash-out rate.
- What is a blended mortgage rate?
- It's the average of your first mortgage rate and your second loan rate, weighted by each loan's balance. It shows the effective rate on your total debt.
- What's the difference between a HELOC and a home equity loan?
- A HELOC is a revolving line of credit, usually with a variable rate. A home equity loan is a lump sum with a fixed rate and fixed payments.
- Which has lower closing costs?
- Second loans often have lower up-front costs than a full refinance, though fees vary by lender. A cash-out refinance has closing costs on the entire new loan.
- How much can I borrow?
- Lenders set combined loan-to-value limits, often around 80% to 90% of the home's value across all loans. Limits vary by lender, program and credit.
- Is HELOC interest tax-deductible?
- In some cases, when the money is used to buy, build or substantially improve the home. Ask a tax professional about your situation.
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