Home equity comparison

Keep your rate, or refinance?

If your first mortgage has a rate worth protecting, a cash-out refinance may not be the only way to access equity. Use this worksheet to compare replacing the whole first mortgage against keeping it and using a home equity line of credit (HELOC), or a fixed home equity loan (HELOAN).

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Your current first mortgage

Start with the numbers you know. Blank fields are waiting for your input; the current payment can stay blank if you know the balance, rate, and years left.

Current first mortgage balance ($) Current first mortgage rate (%) Years left on current loan Current payment without escrow, optional If blank, the tool estimates it from the balance, rate, and years left. Cash or equity you want to access ($)

Option A: replace the first mortgage

Use estimates you want to test. These are not Bay Capital rates, quotes, or offers.

Estimated cash-out refinance rate (%) New loan term (years) Estimated refinance closing costs ($)

Option B: keep the first + use home equity

Use a HELOC or HELOAN estimate to compare against replacing the first mortgage.

Estimated HELOC / HELOAN rate (%) Payment type HELOC / HELOAN amortization (years) Estimated HELOC / HELOAN costs ($)

What this can show

It can help frame whether the low first-mortgage rate is worth protecting, how much new money changes the blended rate, and whether the monthly payment difference deserves a closer look. The blended rate is just the average rate across everything you'd owe, weighted by loan size.

What it can't decide

It doesn't know your credit, income, property value, payoff figures, lien position (which loan gets paid first), product eligibility, variable-rate exposure, taxes, insurance, escrow, or final closing costs.

Best next step

Use it as a conversation starter. If the comparison looks close, the real answer usually depends on how long you expect to keep the debt and whether flexibility or payment certainty matters more.

Want the real comparison?

Get Eric's take before you choose.

You don't need to pick the right product first, and talking it through never touches your credit.

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Educational calculator disclaimer

Educational estimate only. This tool uses the numbers you enter, including any rates you estimate, which are not rates offered by Bay Capital Mortgage Corporation. Nothing here is a quote, an offer, an interest rate, an APR, a pre-approval, or a commitment to make a loan. Your actual numbers depend on full underwriting and credit approval.

This calculator is an educational illustration using numbers entered by the visitor. It is not a quote, offer, rate, APR, payment, loan estimate, approval, or commitment to make a loan. Actual loan options depend on borrower qualifications, income, credit, collateral, property value, lien position, available equity, loan-to-value requirements, investor guidelines, closing costs, fees, and final underwriting approval. HELOCs and HELOANs may have variable rates, interest-only periods, draw periods, repayment periods, fees, and payment changes. A cash-out refinance replaces the current first mortgage with a new loan and may extend the repayment term or increase total interest paid.