New Hampshire HELOC, Home Equity Loans and Cash-Out Refinance Breakeven Math — Lilac Saltbox
Updated October 2026
A New Hampshire homeowner financing a $60,000 renovation should compare more than the advertised rate. A HELOC preserves the existing first mortgage, a home equity loan adds a separate installment payment, and a cash-out refinance reprices the entire outstanding mortgage balance.
Identify which balance gets the new rate
Suppose your home is worth $500,000 and your first mortgage balance is $280,000. At an illustrative 80% combined loan-to-value ceiling, total secured borrowing would be $400,000, leaving $120,000 before fees and other liens. Actual limits depend on the lender, credit profile, occupancy, and property.
Use the home equity calculator to test different valuations instead of treating an online estimate as an approved appraisal.
| Option | Main comparison point |
|---|---|
| HELOC | Variable-rate exposure, draw rules, and repayment changes |
| Home equity loan | Separate fixed payment when offered at a fixed rate |
| Cash-out refinance | New pricing and term on the entire first mortgage |
A HELOC's initial payment may cover only interest during the draw period. At $60,000 fully drawn and an illustrative 9% rate, interest alone is about $450 monthly. That payment does not reduce principal and can rise if the rate changes.
Use breakeven math on comparable scenarios
If a refinance costs $6,000 and genuinely saves $200 monthly on comparable financing, simple breakeven is 30 months. But that shortcut becomes misleading when the new loan provides additional cash, extends repayment, or reduces principal more slowly.
Compare the same $60,000 funding need across all three options. Include closing charges, annual fees, any early-closure fee, payments over your expected ownership period, and the remaining balances at its end.
The refinance savings calculator helps organize the first-mortgage comparison. The Consumer Financial Protection Bureau explains mortgage costs and disclosures that belong in that review.
Keep taxes separate from borrowing costs
New Hampshire has no general state sales tax or wage income tax, but property taxes remain a major household expense. Municipal and SWEPT rates influence escrow needs; a refinance does not make those obligations disappear.
Around semiannual July and December billing cycles, a new escrow deposit and a later refund from the old servicer can temporarily distort the cash needed at closing. Review the tax framework through the New Hampshire Department of Revenue Administration.
Lilac Saltbox can help distinguish true financing savings from a smaller payment produced mainly by restarting the repayment clock.
Compare Current Home Equity & HELOC Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
New Hampshire HELOC, Home Equity Loans and Cash Out Refinance Breakeven Math — Compare remaining-term interest and closing costs with the new term; divide costs by positive monthly savings for a simple break-even, and account for financed fees.
Historical 2025 one-unit comparison: conforming $832,750; FHA floor $541,287. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
- New Hampshire Housing — state housing finance and property tax authority.
- New Hampshire Department of Revenue Administration — state housing finance and property tax authority.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.