The Refi Temptation

If you’re a homeowner sitting on equity, you’ve probably considered a cash-out refinance. Itsounds appealing: refinance your mortgage and get cash back.

But in 2025, with high interest rates that move could cost you more than you think.

The Real Difference

When Refinance Doesn't Make Sense

Let’s say you locked in a $300,000 mortgage at 3.5%. Now you want to access $30,000 for home repairs or debt consolidation, buying a new property or any other purpose.

If you refinance:

• You lose your 3.5% rate and your new mortgage will likely jump to a higher percentage
• You restart your loan term—likely 30 years again

That means you’re paying a much higher rate on the entire $300k, not just the $30k you need.

When a HELOC Wins

• Keep your current mortgage untouched
• Borrow with flexibility
• Get faster access to funds – no lengthy refi process
• With Upstart Mortgage, you could benefit from AI underwriting that can look beyond just credit scores

The Bottom Line

In a high-rate world, flexibility is power. A HELOC gives you the breathing room you need—without putting your entire mortgage at risk.

With Upstart Mortgage, you can:

• Tap into your home equity fast
• Avoid restarting a 30-year loan

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