A cash-out refinance replaces your first mortgage — best when today’s rate helps. A HELOC (variable, revolving) and a home equity loan (fixed lump sum) are second liens that keep your current rate.
The rate question
If your current rate is low, keep it — use a HELOC or home equity loan. If you’d benefit from today’s rate or want to consolidate into one payment, a cash-out refinance makes sense.
Choosing
Cash-out: one loan, potentially better rate, large sums. HELOC: flexible, variable, keeps your first mortgage. Home equity loan: fixed lump sum, keeps your first mortgage. We model all three.
| Factor | Cash-Out / HELOC / Home Equity Loan |
|---|---|
| Touches 1st mortgage | Replaces it / Keeps it / Keeps it |
| Rate | Fixed/ARM / Variable / Fixed |
| Payout | Lump sum / Revolving / Lump sum |
| Best when | Today’s rate helps / Flexible need / Fixed one-time need |
Frequently asked questions
I have a 3% mortgage — should I cash out?
Usually no — replacing a very low rate is costly. A HELOC or home equity loan preserves it. We’ll prove the math.
Which gives the most cash?
Often the cash-out refinance, since it’s a new first mortgage — but weigh it against the rate reset.
Which is fastest?
A HELOC is often quickest; a cash-out and home equity loan take a full underwrite and appraisal.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.