Tell us about your home and mortgage
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Include principal, interest, taxes, homeowners insurance and any mortgage insurance
The amount already included in the payment above
Home Equity Cash Flow ReviewYour home equity.
Your home equity.
Your monthly possibilities.
What if the problem isn't your income, but your monthly payments? Compare what you pay today with a home equity loan / HELOC or cash-out refinance.
- Start with your current payments
- Keep your first mortgage rate
- Compare payments side by side
- See the trade-offs
Monthly possibilities
Could your equity lower your payments?
See your estimated monthly difference below. No guaranteed savings.
Eric Hamilton
Producing Area Manager/VP of Product
NMLS: 414113
Why an equity line may help
An equity line (HELOC or home equity loan) lets you leave your current first mortgage alone while using a separate line against the home to reorganize selected debt.
- Potentially preserve a lower first mortgage rate
- Replace several monthly debt payments with one additional payment
- Create monthly cash flow if the new payment is lower
- Maintain flexibility if the line allows future draws
Why one cash-out mortgage may help
A cash-out refinance can combine the existing first mortgage and selected debts into one new mortgage payment.
- Simplify multiple payments into one loan
- Potentially create a larger monthly cash flow change
- Use longer mortgage amortization to lower the payment
- Fixed-rate options can keep the payment predictable
Educational estimates only. Rate does not recommend a specific product; actual pricing, payment structure, qualification and closing costs will vary.
Monthly payment FAQs
Why would I use a second mortgage instead of refinancing?
A second mortgage leaves your existing first mortgage and its rate in place, while adding a separate payment. A home equity loan typically provides a lump sum; a HELOC is a revolving line whose rate and payment can change. Compare the combined payments, fees and repayment terms—not just the new loan's rate. Both use your home as collateral.
Why would I consider one cash-out mortgage?
A cash-out refinance replaces your existing mortgage and pays off the selected debts with one new loan. It can simplify payments, but changes the rate on your entire mortgage balance, adds closing costs and can restart your repayment timeline. The estimate includes taxes, insurance and HOA once; unselected debts remain outside the comparison.
Does a lower payment mean I am saving money?
Not necessarily. This comparison shows monthly cash flow, not lifetime savings. A longer repayment period or interest-only payment can reduce today's payment while increasing total interest. Moving unsecured debts onto a mortgage also puts your home at risk if you cannot repay. Remaining loan terms, actual fees and how quickly you repay all matter.
What if my selected debts total less than $25,000?
The calculator models a $25,000 minimum second mortgage. For example, paying off $15,000 of selected debts leaves $10,000 in additional proceeds that could be used for home improvements or other expenses. The payment and combined loan-to-value use the entire $25,000—not just the debt payoff. For a HELOC, this assumes the modeled amount is drawn; an undrawn limit is not cash received. Extra proceeds are borrowed money, not savings, and actual proceeds depend on fees and loan terms.
What limits apply to the amounts shown?
The calculator checks new loan amounts of $25,000–$750,000. A second mortgage plus your existing mortgage cannot exceed 90% of your home value. A cash-out mortgage, including estimated financed closing costs, cannot exceed 80%. Meeting these limits is not approval: individual programs, credit, income and property requirements may be stricter.
What if the new payment is higher—or I keep things as they are?
A higher estimated payment is shown as an increase, not a saving. It may reflect extra borrowed cash, a shorter term, a higher rate or closing costs. Keeping your current mortgage and debts unchanged is included as a comparison; you do not have to take a new loan. If a payment looks inconsistent, check your statement amounts before relying on the results.
