Frequently Asked Questions
What is the difference between a HELOC, cash-out refinance, and home equity loan?
A HELOC is a revolving credit line secured by your home — you draw funds as needed and pay interest only on what you use. A cash-out refinance replaces your existing mortgage with a larger one and gives you the difference in cash at a fixed rate. A home equity loan (HELOAN) provides a lump sum at a fixed rate as a second lien, leaving your first mortgage untouched. Each option has different rates, payment structures, and closing costs that affect total cost.
How do I decide which equity access option is best for my situation?
The best option depends on your current mortgage rate, how much equity you need, and your repayment preference. If your first mortgage rate is below current market rates, a HELOC or HELOAN preserves that low rate. If you need a large lump sum and your current rate is high, a cash-out refinance consolidates everything into one payment. Use the calculator to compare all three options with your actual numbers.
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