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  Opens in a new window. or higher.
• Loan terms: Fixed-rate mortgages with repayment terms of 15 to 30 years  Opens in a new window. 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.
• Speed: Varies, often 30–60 days ^{**: Navigates to bottom disclaimer}

A home equity line of credit (HELOC) lets you tap into your home’s equity and—unlike many traditional HELOCs—Figure’s HELOC can also be used to pay off your existing mortgage, similar to a cash-out refinance.

You receive your full initial draw upfront at a fixed^{5: Navigates to numbered disclaimer} or variable^{7: Navigates to numbered disclaimer} rate. As you repay the balance, you can make additional draws, each with its own rate based on market conditions. This makes Figure’s HELOC a flexible alternative for homeowners who want fast funding and may want to borrow again later.

• Requirements: Requires 15-20% home equity and a credit score of 600 or higher.
• Loan terms: Figure offers 10, 15, 20, 30-year loan terms.^{6: Navigates to numbered disclaimer}
• How to receive funds: Funds will be disbursed into the account you select during your application.
• Interest rates: Figure offers both fixed^{5: Navigates to numbered disclaimer} and variable^{7: Navigates to numbered disclaimer} options so you can choose the option that works best for you.
• Fees and closing costs: Typically lower upfront costs. Lenders like Figure also offer transparent, straightforward fee structures with minimal hidden charges.
• Speed: Funding in as few as 5 business days on loans of $400k or less^{4: Navigates to numbered disclaimer}

1. Traditional cash-out refinance

   You replace your entire mortgage with a new one and receive a lump sum at closing. This is a great option if you want one fixed loan and don't need flexibility to borrow again later or if you have multiple liens on your property that you want to consolidate.

2. Figure HELOC + Keep your mortgage

   You keep your existing mortgage and take out a separate HELOC for additional funds. This option does not pay off your current mortgage. It's useful when rates are high, or you have a low mortgage rate already, but you want a lower-cost way to borrow against your equity.

3. Use a Figure's HELOC as a cash-out refi (Figure cash-out refi HELOC*)

   With Figure's HELOC, you have the option to pay off your existing mortgage, similar to a traditional cash-out refinance—but with the added benefit of ongoing flexibility:

   • Full loan amount (minus fees) is disbursed at closing.
   • Your account remains open, allowing you to draw again as you repay during the draw period—a major advantage over cash-out refinances, which do not allow additional borrowing without another refinance.
   • Can be advantageous alternative when cash-out refinance rates are high.

*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.

Both a traditional cash-out refinance and Figure’s HELOC can pay off your existing mortgage. The key difference:

• A cash-out refinance gives you a one-time lump sum with no future access to funds.
• A Figure HELOC (whether used alongside your mortgage or to replace it) gives you flexibility to borrow again later, and typically has lower upfront costs and faster access to funds.

With Figure’s fully digital process, you could receive funding in as few as five business days.^{4: Navigates to numbered disclaimer}

When comparing your options, consider:

• 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?