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HELOC vs Cash-Out Refi Calculator

Two ways to pull equity. The right answer usually comes down to one number: your current rate.

  1. 1 Home + mortgage
  2. 2 Cash needed
  3. 3 HELOC option
  4. 4 Cash-out option
  5. 5 Your results

Your home and current mortgage

We need these to calculate how much equity you have and whether your locked rate is worth protecting. Ballpark numbers are fine at this stage.

$
Use your best estimate or a recent Zillow / Redfin figure.
$
%
If this is below the cash-out rate you're seeing, a HELOC almost always wins -- it preserves your low locked rate.

Numbers above are estimates from standard mortgage math and 2026 program rules. Your actual rate depends on your credit, debt-to-income, property type, and lender pricing. RobotRefi is not a lender and does not originate loans.

How RobotRefi compares HELOC vs cash-out

01

The locked-rate trap

A cash-out refi does not let you borrow just the new cash at a higher rate -- it replaces your entire mortgage. If your balance is $270k and you need $60k, you're paying today's rate on all $330k, not just the $60k. A HELOC leaves the low rate untouched.

02

HELOC: draw period then repayment

During the draw period, minimum payments are interest-only: balance x rate / 12. After the draw period ends, the outstanding balance fully amortizes over the repayment period. The variable rate is held flat in this model -- treat it as a floor, not a ceiling.

03

Cash-out: new loan replaces the old one

New loan = current balance + cash needed + closing costs. Monthly payment uses standard amortization. Closing costs on cash-out refis run $6,000-$12,000 typically. We compare both options at the 5-year and 10-year marks where most homeowners actually sell or refi again.