Calculateur HELOC

A HELOC has two phases. During the draw period (typically 10 years), you can borrow up to your limit and pay interest only. During the repayment period (typically 20 years), you pay back principal plus interest — often causing payment shock.

Most lenders allow up to 85% combined LTV (your mortgage + HELOC ÷ home value). The rate is variable and tied to the prime rate — it can rise over time.

• ✓ Flexible draw and repay on your schedule
• ✓ Often lower rate than personal loans or credit cards
• ✗ Variable rate means payments can rise
• ✗ Your home is collateral — defaulting risks foreclosure

A cash-out refinance replaces your existing mortgage with a larger one at a new rate, giving you the difference in cash. A HELOC is a second lien that doesn't touch your first mortgage.

Key trade-offs:

• Cash-out refi — fixed rate, one payment, closing costs ~2–5% of loan, replaces your rate
• HELOC — variable rate, flexible draws, lower upfront costs, keeps existing mortgage

If you have a low fixed rate you don't want to lose, a HELOC preserves it. Use the Refinance Calculator to compare the cash-out refi option.