Cash-out refinance or HELOC
Sketch a refinance on refinance break-even. You type both rates. We can help you apply for a HELOC through our lending partners; we do not fund HELOCs. The math is not an offer of credit.
Last reviewed November 1, 2026. This page is not an offer of credit. We’re a mortgage broker and lender in the states where we hold that authority. First Lending Solutions does not fund the line. If the home is in Florida, use the Florida page. That page is limited to brokerage.
Our mortgages are fixed-rate; HELOC rates are usually variable.
A cash-out refinance
You replace the mortgage you have with a new first mortgage. The new loan pays off the old one. Anything above that payoff is what you receive, after costs. That can be a poor trade if you want to keep the loan you already have. We’ll say so.
Costs are part of the comparison. So is the reason you want the money. Moving other debt onto the house is a risk, not a favor.
A HELOC
A HELOC is a line of credit secured by your home. Its rate is usually variable, so payments can change.
You draw what you need, up to a limit, and you usually keep the first mortgage in place. We can help you apply for a HELOC through our lending partners; we do not fund HELOCs. Approval is required.
Your home secures the line, so missed payments can put your home at risk.
Side by side
| Question | Cash-out refinance | HELOC |
|---|---|---|
| What happens to the first mortgage? | It’s paid off and replaced. | It usually stays. |
| What kind of credit is it? | A new first mortgage. | A line of credit. |
| Closing | A full refinance. | Often a different closing than replacing the first mortgage. |
| Why someone asks about it | They’re willing to replace the first mortgage. | They want a line and want to leave the first mortgage alone. |
Neither is the default. Both are subject to approval.
When replacing the first mortgage may be a bad idea
If you don’t want to give up the first mortgage you have, a new first mortgage is the wrong tool. A line can leave that mortgage in place. We’ll tell you when we think replacing it doesn’t help. Both still have to be approved.
What we can discuss
Conventional, FHA, and VA cash-out refinances are fixed-rate mortgages, each subject to that program’s rules and to approval. FHA and VA versions have occupancy and entitlement rules of their own. A HELOC usually sits beside the first mortgage and is also subject to approval. See FHA loans in California and VA loans in Riverside and the Inland Empire. The general refinance page is here. You can talk with us in Riverside in English, Spanish, or Arabic.
Texas
Cash out from a Texas homestead sits under the Texas Constitution, article XVI, section 50(a)(6). That is a refinance of the homestead. It is not a HELOC. The rules include a 12-day notice, a combined loan limit set by Texas law, closing at a lender, attorney, or title office, and fee limits. This note does not state a figure.
A Texas home equity line is separate. It sits under the Texas Constitution, article XVI, section 50(t). It is not a cash-out refinance. Ask us which section applies before you plan on either one.
Texas applications use a separate link. The label is Apply now. Apply now
Questions
What is the difference between a cash-out refinance and a HELOC?
A cash-out refinance is a new first mortgage that pays off the old one. A HELOC is a line of credit secured by your home. Which one fits depends on the file, and both are subject to approval.
How much equity do I need?
We look at the value of the home and what you already owe. What you need depends on the program. This page does not state a figure.
Can I do a cash-out refinance with weaker credit?
Credit gets reviewed. A weaker history can mean the program isn't available. We will not promise otherwise, and we will not print a score.
Is the cash taxable?
We don't give tax advice. Ask a tax advisor about taxes or deductibility.
How long does a cash-out refinance take?
It depends on documents, title, and the appraisal. We do not promise a number of days.
Can a veteran do a VA cash-out?
If you're an eligible veteran, you can ask about a VA cash-out refinance. It is a private loan with a partial VA guaranty, not a loan from the VA, and the VA does not endorse us. It still has to be approved.