Work it as a blended rate, and think hard before disturbing a low first mortgage. A cash-out refinance replaces your entire first loan. If you hold a low fixed rate, say around 3 percent illustratively, the whole balance moves to today's higher rate, including every dollar that is currently cheap. A second mortgage or HELOC leaves the first loan untouched and prices only the new money you borrow. The comparison works like a weighted average. On a cash-out refinance to a common ceiling like 80 percent of the home's value, the existing balance and the new cash both ride the new rate. Keep the low first and add a second at a higher rate, and your effective cost is the blend of the two, which often lands well below the cash-out rate precisely because the big, cheap first mortgage stays cheap. Rule of thumb: the smaller the amount you need relative to a low-rate first mortgage, the more clearly the second or HELOC wins. Refinancing a large cheap balance to reach a modest sum is usually the wrong trade. Some borrowers still prefer the simplicity of one loan and one payment. That is a fair personal preference, as long as you pay for the simplicity knowingly. Confirm current program terms with a lender, and we will run the blended-rate math both ways for you on the free Roadmap conversation.