Keep the low rate. Price the second loan.
Whether you're assuming a seller's mortgage and need to cover the gap, or tapping equity in a home you already own, compare a HELOC and a home equity loan side by side with today's average rates and see the blended rate across both loans.
Your home & first mortgage
What you need
Renovation, tuition, a down payment on the next property, or paying off debts below, or all of the above.
Your housing costs today
The two products
10-yr draw, then 20-yr repay
Your equity, two ways to tap it
Your $600/mo in debt payments becomes ≈ $312 on a HELOC or $439 on a home equity loan
Tappable equity at 85% CLTV: $125,000 · $30,000 cash left after the debts
The monthly picture
HELOC
Equity loan
Rate today
7.49% variable
8.66% fixed
Monthly payment
$312/mo
$439/mo
After the 10-yr draw period
≈ $402/mo
unchanged
Housing payment today, all in
$1,972/mo
$1,972/mo
Housing payment after, all in
$2,284/mo
$2,411/mo
Blended rate with your first
4.07%
4.24%
Monthly change vs those debts
−$288/mo
−$161/mo
Blending beats refinancing: your combined home debt stays under today's ~7.17% average for replacing the whole mortgage. Your 3.50% first survives untouched.
The honest fine print on consolidation: this moves unsecured debt onto your home, and a lower payment stretched over more years can cost more in total interest. Freeing up monthly cash is real; so is the trade.
Rates shown are national averages, not quotes; HELOC rates are variable and will move. Payments exclude taxes, insurance, and fees. Estimates from your inputs, not an offer, approval, or advice.
Straight answers
How does this help with an assumable mortgage?
Some FHA, VA, and USDA loans can be assumed: you take over the seller's existing mortgage, rate and all. The catch is the gap between the loan's remaining balance and the purchase price, which has to come from cash or a second loan. Enter the assumed balance and rate as the first mortgage and the gap as the new loan, and the blended rate shows what you'd really pay across both. That number is what to compare against a plain new mortgage at today's rates.
What is a blended rate and why does it matter?
Your first mortgage rate and the new loan's rate, weighted by their balances: what your total home debt actually costs. It matters because the alternative is usually a single new mortgage at today's rates. If the first loan carries a low rate, whether you assumed it or locked it years ago, a second lien often blends far below what one new loan would cost.
What's the difference between a HELOC and a home equity loan?
A HELOC is a credit line: draw what you need when you need it, pay interest only on the balance during the draw period, at a variable rate. A home equity loan is a lump sum at a fixed rate with a fixed payment from day one. Lines suit ongoing projects and flexibility; loans suit a known number and payment certainty. The calculator prices both on your scenario.
How much equity can I actually access?
Most programs lend to a combined loan-to-value around 85%, meaning the first mortgage plus the new loan can total 85% of the home's value; some stretch higher. The calculator shows the tappable number the moment you enter the value and balance. Your lender confirms the exact limit for your situation.
Will this touch my low first mortgage rate?
No, and that's the entire point. A HELOC or home equity loan is a second lien that sits behind the existing mortgage. The first mortgage's rate, payment, and term continue exactly as they are.
What happens when a HELOC's draw period ends?
The payment steps up, and it surprises people every year. During the draw period you can pay interest only; when it ends, the balance starts amortizing and the payment can jump meaningfully. The calculator shows that future payment on today's numbers so the step-up is priced in before you commit, not discovered in year eleven.
Calculator results are estimates for illustration only, based on your inputs and national average rates. They are not a quote, an appraisal, a pre-approval, or a commitment to lend. Your actual numbers depend on your credit, your county’s taxes and insurance, and the lender you choose.
Found an assumable listing, or weighing a second loan?
Assumptions take extra steps and the right seller. Sean can tell you which listings qualify and what the gap would really look like.