Compare home-equity loans, HELOCs, and cash-out refinance
Keep the first mortgage or replace it?
A home-equity loan or HELOC usually adds a second lien while leaving the first mortgage in place. A cash-out refinance replaces the first mortgage. Compare both debts together, particularly if your existing first mortgage has a lower rate.
Estimate capacity without assuming approval
Combined loan-to-value compares all secured balances with the property's value. For an illustrative $500,000 home, $300,000 first mortgage, and 85% CLTV limit, potential additional borrowing is $125,000 before other liens. This is a scenario, not a property valuation or credit approval.
Plan for payment changes
A fixed loan amortizes over an agreed term. A HELOC may start with interest-only payments and later require principal repayment. Compare today's payment with a higher-rate and repayment-period scenario; your home secures the debt.
Educational estimates are not loan offers or approval decisions. Ratespedia LLC, company NMLS #2796610. Check service availability and licensing.