Before you replace your mortgage,
compare the full picture
Cash from your equity, one new loan, one payment - weighed honestly against keeping the mortgage you have. GA, AL, TN, FL, NC & SC.
A cash-out refinance replaces your current mortgage with a larger one and hands you the difference in cash. It tends to make sense when your current rate is at or above the market; when your rate is low, a HELOC or fixed home-equity loan usually protects it. Stonehaven, a licensed mortgage brokerage, compares both paths for your numbers - no SSN, no hard credit pull to see initial options.
HELOC vs. home equity loan vs. cash-out refinance
| HELOC | Home equity loan | Cash-out refinance | |
| Your current mortgage | Stays as is | Stays as is | Replaced by a new loan |
| How you receive funds | A line you draw as needed | One lump sum | Lump sum at closing |
| Payment style | Varies with balance drawn | Fixed monthly payments | One new mortgage payment |
| Usually fits when | Costs arrive in stages | One known amount, fixed budget | Your current rate is higher than today’s market |
Keeping a low first-mortgage rate usually favors a second-lien option; replacing a higher-rate loan can favor a cash-out refinance. A licensed advisor compares all three for your numbers - starting from your home equity options if keeping your rate matters most.
Your current rate decides the question
Replacing a mortgage means giving up its rate. If you locked a low rate years ago, the cash may cost less through a second lien that leaves your first mortgage untouched. If your rate is high, a cash-out refinance can put cash in hand and restructure the loan at once.
The term matters too: a new 30-year loan resets the clock unless you choose a shorter term. Run the refinance calculator to see the break-even math on your numbers.
What the cash typically does
Consolidate eligible high-interest debts into one mortgage-secured payment - restructured, not erased, and your home secures the new loan.
Renovation - fund a project at mortgage-size cost instead of contractor financing.
Investment or large expense - tuition, a business, a property purchase - with a licensed advisor pricing the true long-term cost first.
What borrowers ask us
What is a cash-out refinance?
A cash-out refinance replaces your current mortgage with a new, larger loan and pays you the difference in cash at closing. You end up with one mortgage and one payment, sized on your home's equity.
Cash-out refinance or HELOC - which is better?
If your current mortgage rate is low, a second-lien HELOC or fixed home-equity loan usually protects it. If your current rate is at or above today's market, replacing the loan can make sense. The honest answer comes from comparing both against your rate, balance, and timeline.
How much cash can I take out?
Most conventional cash-out refinances allow borrowing up to about 80% of the home's value, minus what you still owe. VA cash-out programs can allow more for eligible veterans.
Does a cash-out refinance restart my mortgage?
It replaces your current loan with a new one, so the term resets unless you choose a shorter one. That long-term cost belongs in the comparison - we put it there.
Do I need an appraisal?
Usually yes for a cash-out refinance - the loan is sized on the home's current value. Some scenarios qualify for an appraisal waiver; your advisor confirms.
Is this available in my state?
Stonehaven arranges cash-out refinancing in Georgia, Alabama, Tennessee, Florida, North Carolina, and South Carolina.
Tell us about the current loan
Balance, rate, and goal - a specialist replies within one business day. No hard credit pull to compare initial options.