HELOC vs home equity loan vs cash-out
Three ways to borrow. Only one of them touches the first mortgage.
The split
A home equity loan is a fixed lump-sum second lien. A HELOC is a revolving second lien, usually variable. A cash-out refinance replaces the first mortgage with a larger one.
Keep the first mortgage when its rate is the thing worth keeping. Replace it only when the new rate, the cash, and the term beat the cost of carrying two payments.
Educational only. Not a lender, and not financial, tax, or legal advice.