Blended Rate Calculator
Second mortgage or cash-out refinance?
There are two ways to tap equity or consolidate debt, and which one costs less depends almost entirely on the rate you’re already paying. A refinance replaces everything at one new rate; a second leaves your first loan alone and layers a smaller loan on top. Enter your numbers and the calculator will tell you which comes out ahead — whichever one that turns out to be.
Your debts
Start with your existing mortgage, then add any other debts you’d like to fold in.
The lower this is, the more a cash-out refinance costs you.
On top of paying off the cards below — for a remodel, a down payment, or anything else.
Credit cards, a HELOC, an auto loan, a personal or student loan. Choosing a type sets a typical rate and minimum payment, both of which you can edit. Minimums matter because they’re what today’s payment is compared against.
Paying off cards can move your credit score How much of your available credit you’re using is one of the largest factors in a FICO score. Paying revolving balances — credit cards and HELOCs — down to near zero can raise a score meaningfully, sometimes within a billing cycle or two. Paying off installment debt like an auto or student loan usually moves it far less, because those balances aren’t counted the same way. One caution: keep the cards open after you pay them off. Closing them cuts your available credit and can undo the gain.
Editable — adjust to a rate Justin quotes you.
Editable — adjust to a rate Justin quotes you.
Your blended rate today
0%
the weighted average across $0 of debt you carry right now
No credit pull to start · takes about 10 minutes
Ask about the tax side too In some situations a cash-out refinance leaves more of your interest deductible than a second mortgage would, which can narrow the gap between the two options shown above. But deductibility turns mainly on how the money is used, not which loan you choose — the IRS generally allows the deduction only for debt used to buy, build, or substantially improve the home that secures it. Money used to pay off credit cards typically doesn’t qualify either way. This calculator compares payments only and doesn’t model any tax effect. Run your specific plan past a CPA before deciding, and see the tax savings estimator on this site for the deduction math.
Lower payment isn’t the whole story This compares monthly payments, which is usually the deciding factor — but not the only one. Moving credit card balances onto your home converts unsecured debt into debt secured by your house, and stretching a balance over 20 or 30 years can cost more in total interest even at a much lower rate. Closing costs differ between a second and a full refinance, and neither is reflected here. Worth talking through before you decide.
How this is calculated. Your blended rate is the balance-weighted average across every debt in the comparison — each balance multiplied by its rate, divided by the total owed. The existing first mortgage payment is amortized over the years you enter at your current rate. The second mortgage is amortized over 30 years at the rate shown; the cash-out refinance is amortized over 30 years at its rate, on a new balance equal to your current balance plus any cash requested plus the card balances folded in. “Today” combines your existing mortgage payment with the card minimum payments you enter.
Not included: closing costs, points, mortgage insurance, escrow for taxes and insurance, prepayment penalties, and the total lifetime interest cost of extending a balance over a longer term. Minimum credit card payments change as balances change, so “today” is a snapshot rather than a forecast. All rates shown are examples you can adjust — they are not quotes, locks, or offers of credit, and your actual rates depend on credit, combined loan-to-value, occupancy, loan amount, and program. Second mortgages and refinances are secured by your home. This is an educational estimate, not a pre-approval, a commitment to lend, or financial advice. Equal Housing Opportunity.