HELOC vs. Cash-Out Refinance Calculator

Our calculator is designed to help you compare the potential costs and savings of a Figure HELOC versus a cash-out refinance, so you can choose the option that best fits your financial goals.

To get the most accurate results, you'll enter a few key details:

• Current Mortgage Principal Balance: The remaining amount you owe on your mortgage
• Current Mortgage Interest Rate: Used to calculate the cost of keeping your current loan vs. refinancing it
• Remaining Mortgage Term: The number of years left on your current mortgage
• Credit Score: Helps determine your estimated interest rates for each loan option
• Current Home Value: The estimated market value of your home, used to calculate total equity
• Equity Available: The difference between your home's value and your current mortgage balance, which affects how much you can borrow
• Loan Amount Needed: The amount of money you want to borrow

Once you input your information, the calculator provides a detailed side-by-side comparison of both options, including:

• Estimated Loan Amounts: Including your existing balance plus any new funds, fees, or origination costs
• Monthly Payments: For both the cash-out refinance and the HELOC, factoring in loan term, rate, and fees
• Interest Costs: The total interest you'd pay over the life of each loan
• Total Cost: The combined principal and interest you'd repay over time
• Estimated Savings: Potential savings based on your inputs and assumptions used in the model

Use the calculator to explore your personalized comparison and better understand which option may suit your budget and long-term goals.

A cash-out refinance is a type of mortgage refinance that replaces your current mortgage with a new loan for a higher amount.The difference between your existing mortgage balance and the new loan is provided to you in cash. It's a good option if you're looking for a substantial lump sum and are comfortable refinancing your entire mortgage with a new long-term loan and fixed monthly payments.

How does a cash-out refinance work?

• Requirements: Typically, you'll need at least 20% equity in your home and a credit score of 620 or higher.
• Loan terms: Fixed-rate mortgages with repayment terms of 15 to 30 years that include principal, interest, taxes, and insurance.
• How to receive funds: Lump sum after closing.
• Interest rates: Usually lower than personal loans, but possibly higher than your current mortgage.
• Fees and closing costs: Generally 2% to 5% of the loan amount.

A home equity line of credit (HELOC) allows you to access your home's equity without changing your existing mortgage. Unlike traditional HELOCs, Figure's Home Equity Line provides the full loan amount upfront at a fixed rate^{5navigates to numbered disclaimer} for your initial draw—so you can access funds quickly with predictable payments. It's a flexible solution for homeowners who want fast funding and prefer to borrow only what they need.

As you repay, you may be eligible to make additional draws, each at a new fixed rate based on market conditions at that time.

How does a Figure HELOC work?

A Figure HELOC works much like a cash-out refinance, but with added flexibility. You can use it to pay off and replace your existing mortgage*, consolidate debt, or fund major expenses—all while locking in a fixed interest rate and keeping your repayment simple with one predictable monthly payment.

• Requirements: Requires 15-20% home equity and a credit score of 640 or higher.
• Loan terms: Figure offers 5, 10, 15, 30-year loan terms.^{6navigates to numbered disclaimer}
• How to receive funds: Funds will be disbursed into the account you select during your application.
• Interest rates: While most HELOC lenders offer variable rates, which could leave borrowers with uncertainty or balloon payments, Figure offers fixed rate HELOCs^{5navigates to numbered disclaimer}, providing more stability for your payments.
• Fees and closing costs: Typically lower upfront costs. Lenders like Figure also offer transparent, straightforward fee structures with minimal hidden charges.

Both options let you pay off and replace your current first mortgage with a new, fixed-rate obligation; the key difference is how that new obligation is structured and how much flexibility you retain.

With the Figure Cash-Out Refi HELOC*, your full loan amount (minus the origination fee) will be 100% funded at closing, yet the account stays open. As you pay down the balance, you're free to draw again during the draw period, and each new draw receives its own fixed rate. And Figure's fully digital application process means you could receive funding in as few as five days^{4navigates to numbered disclaimer}.

A traditional cash-out refinance also provides a fixed rate, but only through a single, closed-end mortgage for the higher balance. It doesn't allow future draws—your access to equity ends with the single lump sum you take at closing—and it typically comes with higher closing costs and a longer timeline to fund than Figure's HELOC.

When deciding between these options, consider the following questions:

• Do you want the flexibility to borrow again later as you repay, or are you comfortable taking a one-time lump sum?
• How quickly do you need the funds?
• Are closing costs and up-front fees a concern?
• Are you prepared for the generally higher fees of a traditional refinance, or would a lower-cost line of credit be a better fit?

*The Figure Cash-Out Refi HELOC is an open-end home equity line of credit where you can pay off only the most junior lien. The full line amount (minus any origination fee) is advanced at origination; additional draws are available during the draw period, subject to minimums and credit approval.