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HELOC Calculator
Model the cost of borrowing against your equity, and think twice about why you would.
The other side of a recast
A recast puts money into your house and permanently lowers your required payment. A HELOC takes money out of your equity with a variable-rate line of credit. They are opposite moves, and a surprising number of homeowners consider both in the same period.
What a HELOC costs
HELOCs are variable-rate products, typically priced at a margin above the prime rate. Payments are interest-only during the draw period, then principal and interest in the repayment period, which can mean a large jump in the required payment. This calculator models the draw amount, the rate and the two payment phases so the real cost is visible before you commit.
Variable-rate risk
If rates rise, the interest-only payment rises with them, and the principal-plus-interest repayment phase can be a shock. A recast, by contrast, locks in a lower fixed payment for the rest of the loan.
When it might make sense
Liquidity is the one thing a recast gives up. If you need to access equity later, a HELOC is one path back out, which is why financial planners sometimes discuss the two tools together. This calculator gives you the HELOC side of that comparison.
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