Tap the equity. Keep the mortgage.
Compare a HELOC and a home equity loan side by side with today's national average rates: the payments, the blended rate against your first mortgage, and what consolidating your debts would free up each month.
Your home & first mortgage
What you need
Renovation, tuition, a down payment on the next property, or paying off debts below, or all of the above.
The two products
10-yr draw, then 20-yr repay
Your equity, two ways to tap it
Your $600/mo in debt payments becomes ≈ $304 on a HELOC or $421 on a home equity loan
Tappable equity at 85% CLTV: $125,000 · $30,000 cash left after the debts
The monthly picture
HELOC
Equity loan
Rate today
7.30% variable
8.10% fixed
Monthly payment
$304/mo
$421/mo
After the 10-yr draw period
≈ $397/mo
unchanged
Blended rate with your first
4.04%
4.16%
Monthly change vs those debts
−$296/mo
−$179/mo
Blending beats refinancing: your combined home debt stays under today's ~6.73% average for replacing the whole mortgage. Your 3.50% first survives untouched.
The honest fine print on consolidation: this moves unsecured debt onto your home, and a lower payment stretched over more years can cost more in total interest. Freeing up monthly cash is real; so is the trade.
Rates shown are national averages, not quotes; HELOC rates are variable and will move. Payments exclude taxes, insurance, and fees. Estimates from your inputs, not an offer, approval, or advice.
Numbers look good? Make them real.
These are honest ballparks built on national averages. Your real quote comes from lenders competing for your actual file, and getting it costs nothing.
Straight answers
What's the difference between a HELOC and a home equity loan?
A HELOC is a credit line: draw what you need when you need it, pay interest only on the balance during the draw period, at a variable rate. A home equity loan is a lump sum at a fixed rate with a fixed payment from day one. Lines suit ongoing projects and flexibility; loans suit a known number and payment certainty. The calculator prices both on your scenario.
What is a blended rate and why does it matter?
Your first mortgage rate and the new loan's rate, weighted by their balances: what your total home debt actually costs. It matters because the alternative, a cash-out refinance, replaces your entire mortgage at today's rates. If you locked a low rate years ago, a second lien often blends far below what refinancing everything would cost, which is the whole argument for leaving the first mortgage alone.
How much equity can I actually access?
Most programs lend to a combined loan-to-value around 85%, meaning your first mortgage plus the new loan can total 85% of the home's value; select programs stretch higher. The calculator shows your tappable number the moment you enter the value and balance.
Is consolidating my debts into my house smart?
It's powerful and it deserves respect. The payment relief is usually dramatic, and the interest rate usually beats cards by a mile. The trades: unsecured debt becomes debt secured by your home, and a lower payment stretched over more years can cost more in total. The calculator shows both sides, and we'll talk it through straight before you sign anything.
Will this touch my low first mortgage rate?
No, and that's the entire point. A HELOC or home equity loan is a second lien that sits behind your existing mortgage. Your first mortgage's rate, payment, and term continue exactly as they are.
What happens when a HELOC's draw period ends?
The payment steps up, and it surprises people every year. During the draw period you can pay interest only; when it ends, the balance starts amortizing and the payment can jump meaningfully. The calculator shows that future payment on today's numbers so the step-up is priced in before you commit, not discovered in year eleven.
Two minutes. No obligation. Real numbers.
HELOCs, home equity loans, and the cash-out comparison, quoted side by side.
Guthix Lending • NMLS# 2672037 · Calculator results are estimates for illustration only, based on your inputs and national average rates. They are not a quote, a pre-approval, or a commitment to lend. Your actual rate, payment, and eligibility depend on your full application, credit, and property. Not all borrowers will qualify.