Compare payments, interest, fees, draw and repayment phases, and variable-rate risk while accounting for the economics of your existing mortgage.
Equity and existing loan
Estimated available equity
$187,500
At 85% combined loan-to-value
Cash requested
$75,000
$112,500 cushion below the limit
Current mortgage P&I
$1,516
$138,308 remaining interest if kept to term
Option comparison
| Option | Initial household P&I | After current mortgage maturity | New product interest | Fees | Household interest + fees |
|---|---|---|---|---|---|
| HELOC | $2,031 | $0 | $86,906 | $500 | $225,714 |
| Home equity loan | $2,211 | $0 | $50,147 | $1,500 | $189,954 |
| Cash-out refinance | $2,303 | $2,303 | $473,908 | $10,650 | $484,558 |
Home equity loan has the lowest modeled household interest and fees. This is a cash-flow and financing-cost comparison, not a recommendation; tax treatment, prepayment, rate resets, and loan eligibility can change the result.
Monthly payment impact
- Initial
- After current mortgage maturity
Household interest and fees
HELOC rate-risk check
Starting draw payment
$2,031
Current mortgage plus interest-only HELOC payment
Repayment-phase household payment
$2,243
Includes the first mortgage only if it is still outstanding when repayment begins
Payment at +2.00 points
$2,333
$90 above the unchanged-rate case
What changes between the options
HELOC
Preserves the current first mortgage and offers a draw period, but the rate is usually variable. The model assumes the full requested amount is outstanding throughout the draw phase.
Home equity loan
Preserves the first mortgage and adds a fixed payment. Its predictable payment can be valuable when a variable-rate line would strain the budget.
Cash-out refinance
Replaces the entire first mortgage. Repricing a low-rate existing balance can cost more than the interest rate on the requested cash suggests.
How this calculator works
The preserve-current-mortgage options include the remaining scheduled interest on the existing mortgage plus interest and fees on the new HELOC or home equity loan. The cash-out refinance replaces that stream with interest on the new $355,000 mortgage plus entered closing costs.
HELOC draw payments are interest-only on the full requested balance. Repayment then amortizes that balance over the entered repayment term. Payment phases stop including the existing mortgage when its remaining term ends. Real lines may use changing daily balances, minimum draws, annual fees, rate caps, or different repayment rules.
Worked example: Keeping the current loan and adding the fixed home equity loan produces modeled household P&I of $2,211. Refinancing instead produces $2,303 on the combined balance, while the HELOC starts at $2,031 and its repayment-phase household payment is $2,243 at the unchanged rate.
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