Blended Rate vs Cash Out Refinance | Summer Freeman | Mortgage Marketplace
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Blended Rate Comparison

Keep the low rate and add equity, or refinance everything?

Enter the current mortgage, the debts to pay off and any cash needed. Both options pay off the same debts and deliver the same cash, so the comparison is apples to apples.

1

Current first mortgage

Unpaid principal balance, note rate and years remaining.

$
%
yrs
$
2

Debts to pay off

Credit cards, auto loans, personal loans. Leave empty if there are none.

3

Extra cash wanted

Cash in hand after the debts above are paid off.

$
4

Estimated terms for each option

Your assumptions, not rate quotes.

Option A

Keep first + add equity loan

The first mortgage stays. A second lien covers the payoff and cash.

%
yrs
$
Option B

Cash out refinance

One new loan replaces the first and covers the same payoff and cash.

%
yrs
$

Full breakdown

Every number behind the side by side view. The lower cost in each comparison row is highlighted green.

ComparisonA: Keep first + equityB: Cash out refinance
Starting mortgage balance
First mortgage / second lienn/a
Blended or note rate
Initial monthly P&I
LTV / CLTV
Interest over first 5 years
Closing costs paid in cash
Interest + cash costs, 5 years
Mortgage balance after 5 years
Scheduled lifetime mortgage interest

Debt being replaced

Context only. Both options pay these off at closing, so it is not counted twice.

Payoff amount$0
Weighted APR0%
Remaining interest if kept$0
How the math works
Blended Rate = ((First Balance × First Rate) + (Second Balance × Second Rate)) ÷ (First Balance + Second Balance)
  • Keeping the first can protect a low rate. A large, low rate first mortgage carries most of the weight, even when the second lien rate is higher.
  • A lower payment is not always less interest. Stretching debt over a longer term can lower the payment while raising total interest, so both are shown.
  • HELOC results are assumption sensitive. The rate is held constant. The balance is interest only during the draw period, then amortizes over the remaining term.
  • Fixed loans amortize on the balance, rate and term entered. Debt months left are used to estimate current debt payments and remaining interest.

Want real pricing on both options?

Summer can compare actual programs, pricing, costs and eligibility across multiple lenders, then walk you through which path fits.

Request Refinance Analysis Book a call with Summer
Summer Freeman | Mortgage Broker | Branch Manager | NMLS #360504 · (541) 654-6158 · Apply with Summer
Mortgage Marketplace LLC | NMLS #2367229 · 590 Pearl St, Office 300, Suite 319, Eugene, OR 97401 · (503) 210-1480
Licensed in Oregon, Washington, California, Idaho, Texas, Florida and Montana. Equal Housing Opportunity.

This calculator is for informational and educational purposes only. It is not a commitment to lend, a loan approval, a prequalification, a rate lock, a Loan Estimate or a determination of qualification. All values are estimates based on figures entered by the user.
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