Cash-Out Refi vs HELOC vs Personal Loan

Cheapest way to borrow $50,000

What's the cash for?
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Cheapest option

Personal loan

$2,763/mo · total cost $15,978 · saves $26,079 vs HELOC / HELOAN

Cheapest option

Personal loan

$15,978 total cost

Cash needed

$50,000

amount to borrow

Current home value

$600,000

50.0% LTV before borrowing

Combined LTV after

58.3%

with HELOC

All three options

Personal loanCHEAPEST
Rate: 11.50%Term: 5yr Total monthly: $2,763Lifetime cost: $15,978
  • •Unsecured — no lien on your home
  • •Higher rate but no closing costs
  • •Shorter term means higher monthly payment but less total interest if paid off fast
  • •Not tax-deductible
HELOC / HELOAN
Rate: 8.50%Term: 20yr Total monthly: $2,102Lifetime cost: $42,057tax-deductible
  • •Keep your existing 4.25% mortgage untouched
  • •HELOC rates are usually variable (Prime + margin) — your payment can rise
  • •✓ Interest tax-deductible if used for home improvement
  • •Combined LTV: 58.3%
Cash-out refinance
Rate: 6.75%Term: 30yr Total monthly: $2,312Lifetime cost: $466,391tax-deductible
  • •Replaces your 4.25% mortgage with 6.75%
  • •⚠ Your current rate is BETTER — refinancing means paying 2.50% more on the entire balance, not just the cash-out portion.
  • •New loan: $356,500 (59.4% LTV)
Tax-deductibility: Per the 2017 TCJA, mortgage interest (incl. cash-out and HELOCs) is only deductible when proceeds are used to buy, build, or substantially improve the home securing the loan. Personal loan interest is never deductible. The tax savings shown above assume you itemize and get the full marginal benefit on every dollar of qualifying interest — if your other itemized deductions don’t already exceed the standard deduction, real savings will be lower (potentially zero). Use the Refinance calculator’s Advanced tax settings for a more rigorous treatment. Watch for the rate-trap: if your existing mortgage rate is below the refi rate, cash-out refi means re-pricing your entire balance — almost always worse than a HELOC, even at a higher HELOC rate.