Use these comparisons for planning; final eligibility, pricing and terms are set by the provider.
Terms Needed for a Like-for-Like Quote
| Quote component | What to record |
|---|---|
| Existing lien payoffs | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Required net cash | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| New starting balance | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Fees and insurance | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Second-lien alternative | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
Compare full-balance repricing with a separate equity loan
A cash-out refinance replaces the current mortgage. A home equity loan or HELOC can leave it in place but adds a separate secured obligation. Compare combined payments, closing costs and balances, especially when the existing mortgage has a materially different rate.
Compare the cost of repricing the full first mortgage with a separate equity loan or line when available. Include lender fees, the new total balance and how long the cash purpose will remain useful.
Rate, APR, points and total cost
The note rate drives interest calculations. An APR includes specified costs under the applicable disclosure rules and is not interchangeable with a monthly payment. Points and lender credits change the upfront/rate trade-off. Compare the actual disclosures and ask the provider to identify which charges are financed, paid in cash or offset by credits. The tool’s borrowing-cost output is not a regulatory APR. CFPB: Loan Estimate explainer
A transaction scenario to compare
Illustration: a $350,000 new loan paying off $280,000 of existing debt and $10,000 of costs produces $60,000 before any other required adjustments. It is not equivalent to a quote that releases only $40,000.
Open the appropriate calculator. Replace illustrative starting values with your own assumptions. Review the result’s exclusions before using it in a decision.
Choose the product before choosing a quote
| Financing route | When to compare it |
|---|---|
| Cash-Out Refinance Options | Review product parameters, eligibility and documents. |
| Mortgage Rate-Lock Options | Check the written lock period and extension terms. |
| Mortgage Closing Cost Comparison | Separate lender charges, prepaid items and cash to close. |
How to use the comparison result
First verify that both quotes address the same purpose and net amount. Next compare the required payment with your budget, then compare interest, fees and the balances at a common future month. A different loan amount produces a warning in the quote tool. For ARMs, HELOCs, balloons, interest-only or reverse loans, use the actual contract and relevant product model instead of treating them as standard fixed-rate loans.
What is the cost of financing the requested cash after accounting for changes to the entire mortgage? This question requires the actual provider’s written terms; the page supplies no live lender offer or guaranteed closing rate.
Program references and comparison sources
CFPB: Loan Estimate explainer — Comparison of covered mortgage disclosures, cash to close, points, lender credits and monthly costs.
CFPB: Understand the different kinds of loans available — Loan structures, terms and repayment risks; not provider-specific eligibility.
Check the linked source for its effective date and applicable scope. A source link is not a lender partnership or an individual offer.