Your next move may be in the home you own.
Lowering a payment, funding a renovation and accessing cash are different goals. Compare the cost of replacing your whole mortgage with the cost of borrowing only what you need.
Start with your goal
Replace the current mortgage to change its rate or repayment terms, generally without substantial cash back. Compare closing costs, the new term and the balance you will still owe—not just the payment.
Use the refinance break-even calculator →A home equity loan generally provides a lump sum; a HELOC provides a credit line with a draw period followed by repayment under its terms. Payments and variable rates can change. Either may leave the first mortgage in place.
Understand a second loan →A cash-out refinance replaces the first mortgage with a larger loan; proceeds remaining after payoff and closing deductions provide cash. Compare it with keeping the first mortgage and borrowing separately.
See the blended-rate math →How you document income can affect both paths. Start with the property, mortgage statement and how your business earns money.
Explore income options →| Question | Replace the first mortgage | Keep it and add a second |
|---|---|---|
| What gets a new rate? | The entire new mortgage balance. | The additional borrowing; the first loan keeps its terms. |
| How many payments? | Usually one mortgage payment. | A first-mortgage payment plus the second-loan payment. |
| What needs a closer look? | Closing costs, term reset, principal remaining and any cash taken out. | Combined debt, extra fees, repayment term and possible variable-rate changes. |
| What stays important? | Property value, income documentation, credit, occupancy and lender requirements. Your home secures the borrowing. | Property value, income documentation, credit, occupancy and lender requirements. Your home secures the borrowing. |
Trying to remove mortgage insurance? Eligible conventional borrowers may be able to request PMI cancellation without refinancing. Compare that possibility with a new loan’s costs. Read the PMI cancellation guidance.
Check timing before planning cash out. Ownership duration, existing-loan age, valuation and cash-out requirements differ by program. There is no universal six-month rule. Ask which conditions apply to your current loan and intended new financing.
Compare HELOCs and home equity loans before using the fixed-rate calculator below; it does not model a variable-rate or interest-only HELOC.
Planning an accessory dwelling unit? Compare ADU financing options, including current equity, renovation loans and construction draw requirements.
Make the comparison tangible
Compare keeping your first mortgage and adding a second with replacing both balances in one new loan.
Know the assumptions. A blended rate is a balance-weighted interest rate, not an APR or a complete cost comparison. Payments depend on the remaining terms. This model excludes closing costs and assumes fixed rates; a variable-rate home-equity line can behave differently. All figures are estimates, not a loan offer.
Keep your low first-mortgage rate and add a second, or refinance the whole balance? See the blended rate and estimated payment for each — side by side.
02 / Behind the estimate
This is a fixed-rate payment comparison. It excludes closing costs, taxes, insurance and mortgage insurance. A balance-weighted blended rate is not an APR or a total borrowing-cost measure.
Use the current balance, rate and remaining years.
Model a second loan with its own rate and repayment term.
Model one new mortgage for the existing balance plus the additional borrowing.
A weighted rate summarizes the balances and rates. The payment also depends on each repayment term, so the lower blended rate does not necessarily produce the lower payment.
Refinancing can restart the repayment clock. Compare fees, the time you expect to keep the debt and remaining balances separately before choosing a structure.
03 / The details that matter
Keep the formula and the real-world review connected.
Use remaining years rather than the original term. This determines how quickly the existing balance is repaid in the example.
Repaying the new money over fewer years can increase its payment even if its balance is relatively small.
Spreading the combined debt over more years can lower the payment while extending borrowing.
A valid home value adds combined loan-to-value context. It does not change the payment arithmetic or establish how much equity a lender will allow.
04 / Questions answered
Use consistent balances and realistic loan assumptions.
It is the balance-weighted average of the first- and second-mortgage rates.
It does not include fees or account for the different repayment terms. Use the calculated payments alongside the weighted rate.
Return to the comparisonEnter the years remaining on the current mortgage.
The first-loan payment is estimated from its current balance, rate and remaining term. An original 30-year term is not correct if only 20 years remain.
Check the inputsNo. The home value provides combined loan-to-value context when valid.
Payments come from loan balances, rates and terms. Lender eligibility, credit, income and property review remain separate.
Compare the paymentsSeparate the rate, payment and total cost.
The repayment terms can offset the apparent rate advantage.
A shorter second-loan term can require a larger payment than spreading the same borrowing across a longer replacement mortgage.
Explore different termsNo. The displayed payments exclude closing costs and other property expenses.
Compare fees and total interest separately. The refinance break-even tool can compare replacing an existing loan without cash out; it does not fully model this two-loan cash-out choice.
Explore the refinance cost toolNot for a variable-rate or interest-only HELOC structure.
This model assumes fixed rates and amortizing payments. A line of credit can have different draw and repayment periods and changing rates.
Compare a HELOC with a second mortgageMatch the structure to the reason for borrowing.
No. It is one factor alongside fees, repayment length and your plans.
Consider how long you will keep the loans and whether the new term increases the debt you will still owe later.
Read the full comparisonBring your mortgage statement, estimated property value and the amount you want to borrow.
Include the purpose of the funds, expected repayment period and any quotes. Income documentation and property details help the team review the available structures.
Explore income documentation for a second loan05 / From estimate to conversation
Use these topics to prepare a focused review of your situation.
What we review: Balance, rate and remaining repayment term.
Why it matters: Keeping a first mortgage preserves its existing terms.
Current statement and any prepayment details.
What we review: Amount, purpose and timing.
Why it matters: A lump sum and a reusable line can serve different needs.
Funding goal and expected spending schedule.
What we review: Payments, fees and repayment horizon.
Why it matters: The smallest payment may not minimize borrowing cost.
Itemized quotes and your expected time in the home.
What we review: Property value, total debt and income documentation.
Why it matters: Payment math alone does not determine eligibility.
Property details and relevant income records.
Have a general question before starting a scenario?
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