Refinance vs HELOC Comparison Tool
See the monthly payment and total carrying cost of a HELOC against a refinance, side by side, over your own comparison horizon.
Monthly payment difference
$2,429
The refinance payment runs higher than the HELOC's interest-only payment over the comparison period — but it includes real principal repayment, the HELOC payment doesn't.
Side by side over 5 years
| HELOC | Refinance | |
|---|---|---|
| Monthly payment | $1,531.88 | $3,961.26 |
| Total paid over horizon | $91,912.50 | $237,675.74 |
| Balance remaining at end | $285,000.00 | $697,254.70 |
The HELOC path assumes interest-only payments on the full amount for the whole comparison period — the balance doesn't reduce unless you voluntarily pay it down. The refinance path is a standard amortizing mortgage, so its balance shrinks and its total cost includes real principal repayment, not just interest. These aren't directly comparable dollar-for-dollar without factoring that in.
HELOC rates are variable. This uses the entered rate held flat for the whole horizon — a real HELOC's carrying cost moves with rate changes over the comparison period.
Read the full comparison
For the qualitative trade-offs behind these numbers, read HELOC vs. Refinance vs. Construction Mortgage for an ADU. Building new construction with staged draws instead? Use the Construction Mortgage Calculator instead.