Should I Refinance or Get a HELOC?
- By Jim Blackburn
- on
- purchase, real estate investing, vision board, wealth plan
Your home has equity — and maybe a lot of it.
The big question is: Should you tap into it?
And if so, should you refinance your whole mortgage or open a HELOC instead?
Both options have pros and cons, and the right one depends on your current rate, your cash needs, and your long-term plans.
Let’s break it down.
What Is a Refinance?
A refinance means replacing your current mortgage with a new one.
You might:
- Lower your interest rate
- Change your loan term (30-year to 15-year, etc.)
- Or cash out some equity while restructuring your payment
Best for:
- People with high interest rates on their current mortgage
- People who want to simplify into one fixed monthly payment
Those planning to stay in the home long-term
Considering a cash-out refinance? Calculate your Conventional Cashout Refinance Loan Payment now to see how much equity you can access while potentially lowering your rate and consolidating into one payment.
What Is a HELOC?
A Home Equity Line of Credit (HELOC) is like a credit card backed by your home.
It doesn’t replace your mortgage — it sits alongside it.
You can:
- Open a credit line (say $100K)
- Borrow only what you need
- Pay interest only on what you use
Best for:
- People who already have a great mortgage rate
- Short-term projects like home renovations
- Those who want flexible access to equity over time
Want to explore HELOC costs and flexibility? Calculate your Heloc Loan Payment now to understand how a home equity line of credit works and what your monthly costs would be at different draw amounts.
Key Questions to Ask Yourself:
- Is your current mortgage rate higher than today’s rates?
- Do you need a lump sum or flexible access?
- Is this a short-term or long-term financial move?
- Are you planning to sell or refinance again in the next 5 years?
Understanding the total cost difference is crucial. Calculate your Compare 2 Rates (Interest Costs) now to compare keeping your current mortgage plus adding a HELOC versus refinancing your entire loan.
Want help comparing both options?
At Stairway Mortgage, we help you access equity strategically—whether through refinancing, HELOCs, or a hybrid approach.
📘 Download our homebuyer guides comparing equity access options.
🧮 Compare scenarios with our HELOC Calculator.
🏠 Learn more on our Refinance or HELOC page.
💰 Explore cash-out options with our Cash-Out Refinance Calculator.
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