The Refi Temptation

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

But in 2025, with interest rates still hovering above 7%, that move could cost you more than you think.

"I almost refinanced my 3.75% mortgage until I saw how much extra I’d pay over time."

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 jump to 7.25%
• 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 only what you need
• Get faster access to funds – no lengthy refi process
• With Upstart, you benefit from AI underwriting that can look beyond just credit scores

"I used a HELOC to cover major repairs without touching my mortgage. I still have my low rate—and my sanity."

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, you can:

• Tap into your home equity fast
• Avoid restarting a 30-year loan
• Keep more money in your pocket

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