The Numbers as of Late August 2026
The national average 30-year fixed cash-out refinance rate is 6.93%, running roughly a quarter to half a percentage point above a standard rate-and-term refinance, which trades around 6.66%. The national average HELOC rate is 7.16% — slightly higher than a cash-out refi's rate, but critically, that rate only applies to the new money you draw, not your entire existing loan balance.
of the loan amount is the typical closing cost range for any refinance — on a $200,000 refinance, that's $4,000 to $10,000 due at closing, largely regardless of whether you're taking cash out. A HELOC through Aven's platform is not run through that same traditional closing-cost structure.
Sources: Bankrate national average cash-out refinance rate, August 31, 2026; TheMortgageReports.com refinance closing cost data. Figures are national averages, not a quote for any specific loan.
Why the First-Mortgage Rate Is the Whole Decision
Here's the scenario that makes a HELOC the clear choice for a large share of homeowners in 2026: if you refinanced or bought between 2020 and 2022, there's a real chance your existing first-mortgage rate sits well under today's average. A cash-out refinance would replace that entire low-rate balance with a new loan at today's rate — meaning even the portion of your mortgage you're not touching gets repriced upward. A HELOC leaves that original, lower-rate balance completely alone and only prices the new amount you're borrowing.
The math flips for homeowners whose existing mortgage rate is already at or above today's refinance rates. In that case, a cash-out refinance can actually lower your blended rate across the whole balance, while a HELOC adds a second rate on top of a first mortgage that isn't improving.
When Each One Wins
| Situation | Cash-Out Refinance | HELOC |
|---|---|---|
| Your current mortgage rate is below today's rates | Reprices your whole balance upward — usually a loss | Leaves your low rate untouched — usually the winner |
| You need a large, one-time amount | One simple loan, one closing | Works, but a HELOC is built more for staged access |
| You want to avoid a full mortgage-level closing process | Full refinance closing, 2–6% of loan amount | Streamlined online closing through Aven's platform |
| Your current mortgage rate is already above today's rates | Can lower your blended rate — worth comparing | Adds a second rate on top of an already-high first mortgage |
Run Your Own Numbers
The homepage calculator on Equity Line Direct compares these two paths side by side using your actual first-mortgage balance, the cash you want to access, and your current rate — it's the fastest way to see which direction wins for your specific numbers rather than the national averages above.