THE RATE SHOP · HOME EQUITY OPTIONS IN KANSAS & MISSOURI
Keep your first mortgage.
Put your equity to work.
Explore a separate home equity loan for high-interest debt or your next renovation—without replacing the mortgage you already have.
Keep the rate you love.
A separate second mortgage leaves your existing first mortgage in place.
Create room in your budget.
Compare high-interest card payments with a fixed home equity loan payment.
Choose your pace.
See 10-, 15-, and 20-year payments and total borrowing costs together.
ONE BALANCE. THREE WAYS TO REPAY.
Less each month—or less over time?
Compare the tradeoff before choosing a term. Your first mortgage payment stays separate and is unchanged in this illustration.
All options use the same illustrative rate so you can isolate the effect of the term. Actual quotes may have different rates by term.
MIKE BAKER · NMLS #259076
Your equity. A plan that fits your life.
I'll help you compare the payment, the costs, and your options—whether you're updating your home or looking for a clearer path out of high-interest debt.
What makes debt useful?
Think through the purpose, repayment plan, and cost.
Read Mike's guide to borrowing →Home equity or refinance?
Get clear answers before replacing a mortgage you like.
Explore the home equity FAQs →Let's review your options.
Tell Mike how you want to use your equity.
Start my home equity review →Good questions. Clear answers.
Does this replace my low-rate first mortgage?
No. This models a separate, fixed-rate home equity loan with its own payment. Your first mortgage remains in place. A cash-out refinance, by contrast, replaces the first mortgage.
Is this the same as a HELOC?
No. This tool models a lump-sum loan repaid over a set term at a fixed rate. A home equity line of credit usually lets you draw funds over time, and its rate and payments may change.
Why do you need my credit card payment?
A balance and APR alone do not tell us how long repayment will take. We assume you keep paying the entered amount every month, with no new spending, fees, or rate changes. Your actual card terms and payment habits can change the result.
What if I keep paying the same amount after consolidating?
If your budget allows it and the loan permits extra principal payments without a penalty, you may repay the new loan faster and reduce interest further. When the numbers support it, the tool shows that optional scenario separately.
Can I use this for renovation costs?
Yes. Choose renovation mode to see the additional monthly payment and term options. The tool does not assume a renovation will increase your home's value or create investment returns.
Assumptions & sources
Home equity payments use fixed-rate monthly amortization. Card payoff uses the entered fixed monthly payment and APR divided by 12; the final payment is adjusted to the remaining balance. Actual cards often accrue interest daily. No new charges, card fees, tax benefit, changing rates, or declining minimum payments are modeled. Payoff projections stop after 100 years; no savings are shown if the card cannot be paid off under that assumption.
Interest comparisons use each option's own payoff schedule, not a shared end date. “After fees” subtracts entered loan fees from the interest difference. Financed fees increase the balance and interest. Both cash and financed fees are counted once. Loan fees are not a complete cash-to-close estimate. No value increase, credit-score change, or qualification is assumed. Extra-payment examples assume no prepayment penalty.
Sources: CFPB: What is a home equity loan? · CFPB: Home equity loan vs. HELOC. Reviewed September 29, 2026.