Use these comparisons for planning; final eligibility, pricing and terms are set by the provider.
Compare the product features
| Decision dimension | Cash-Out Refinance Options | Home Equity Loan Options |
|---|---|---|
| Existing first mortgage | Replaced with a new mortgage | May remain in place as a separate lien |
| Payment structure | New total first-lien payment | Existing payment plus new equity payment |
| Cost question | Repricing the full first-lien balance | Cost of the additional borrowing |
When to examine cash-out refinance options
A cash-out refinance can be compared when replacing the existing mortgage is itself acceptable and the cash objective fits.
When to examine home equity loan options
A separate equity loan can be compared when preserving the existing first-lien terms matters and a defined lump sum is needed.
Price the effect on the existing first mortgage
Illustration: an owner needs $50,000 while owing $250,000 on the first mortgage. A cash-out refinance reprices the replacement balance, while a separate equity loan prices the additional borrowing. Add both payments and fee sets in the second-loan scenario before comparing costs.
Avoid an unequal cost comparison
Comparing only the new equity-loan rate with the refinance rate ignores how much debt each rate applies to.
Use the same property or clearly label a different housing scenario. Match the net funds advanced, holding period and costs being counted. Principal repayment consumes cash but reduces debt; fees and interest are borrowing costs. Keep taxes, insurance, upkeep and any other recurring costs visible without counting them twice.
Inputs for the next step
| Input | Comparison use |
|---|---|
| Purpose and occupancy | Confirm both routes fit the actual transaction. |
| Written terms or labeled assumptions | Do not substitute a public advertisement for a personalized quote. |
| Upfront and financed charges | Show cash required and changes to the opening balance separately. |
| Expected holding period | Compare the payment history and remaining obligation at the same date. |
Choose a route, then request actual terms
What is the cost of obtaining the same net cash over the same time horizon?
Use the linked product pages to identify the eligibility and documentation checks. Confirm them directly with a verified provider. For supported fully amortizing fixed-rate quotes, the quote tool compares entered costs; it does not rank lenders or certify that either proposal is available. For variable, project or other special financing, use the relevant calculator and contract-specific information.
Continue the comparison
Open Cash-Out Refinance Options · Open Home Equity Loan Options · Compare My Written Fixed-Rate Quotes
Program references and comparison sources
CFPB: Understand the different kinds of loans available — Loan structures, terms and repayment risks; not provider-specific eligibility.
CFPB: Loan Estimate explainer — Comparison of covered mortgage disclosures, cash to close, points, lender credits and monthly costs.
CFPB: Mortgage key terms — Definitions of mortgage costs, home equity and other mortgage terms.
CFPB: What is a HELOC? — Revolving home-secured borrowing, draw and repayment periods, collateral risk.
CFPB: Information required for a Loan Estimate — Six information items for covered transactions; exceptions include HELOCs and reverse mortgages. Do not demand documents as a precondition.
Check the linked source for its effective date and applicable scope. A source link is not a lender partnership or an individual offer.