Second mortgageHELOC
$562.50/ month
Hypothetical interest-only payment
- Principal after 12 interest-only payments
- $75,000
- Interest paid in that year
- $6,750
- Rate behavior
- Usually variable
The calculator door
Home equity, three ways.
Compare the payment shape of a HELOC, a HELOAN and a cash-out refinance. Start with a hypothetical 9% rate, then move the rate and terms to see what changes.
Live math
No information saved
Borrower + loan officer ready
Side-by-side
The payment shapes.
$75,000 accessed at a hypothetical 9% rate.
Second mortgageHELOAN
$760.70/ month
Principal + interest payment
- Selected term
- 15 years
- Total interest over selected term
- $61,926
- Balance at the end
- $0
Replaces first mortgageREFINANCE
$3,017.33/ month
New total principal + interest payment
- New hypothetical loan amount
- $375,000
- Change from entered current P&I
- +$967.33
- Selected term
- 30 years
Combined debt after accessing cash$375,000
Hypothetical combined loan-to-value75.0%
How to read the HELOC
Lower at the start does not mean paid off.
The HELOC figure is interest-only on the amount used. At this payment, the $75,000 principal does not go down. The rate is commonly variable, so the payment can move even if the balance does not.
These are hypothetical principal-and-interest calculations, not an approval, quote, rate lock or commitment to lend. Taxes, insurance, closing costs, fees, minimum-payment rules and future rate changes are not included.
What changes between them
Two second mortgages. One replacement.
A reusable line.
You draw what you need during the draw period. Many HELOCs begin with interest-only minimum payments, use a variable rate and later enter a repayment period that includes principal.
A fixed lump sum.
You receive the funds at closing and repay principal plus interest on an amortizing schedule. The 10-, 15-, 20- and 30-year buttons show how term length changes the payment and total interest.
A new first mortgage.
The current first mortgage is replaced by one new loan that includes the cash taken out. Compare its full new payment with the existing first-mortgage payment, not only with a second-mortgage payment.
One calculator door
The calculator library lives here.
Calculators may appear beside the question they answer elsewhere in the platform, but this is their permanent home.
