Google "HELOC or refinance" and you’ll drown in calculators that spit out random APRs and bloggers pushing affiliate links. What those articles never ask: how long you’ll stay, what tax bracket you’re in, or whether your income documentation fits Fannie’s checklist. The result is paralysis.

Here’s the cheat-sheet most sites bury on page four:

• Refinance = you replace your entire first mortgage with a new rate/term. Best when today’s rates are at least 0.5% below your current note or you need to drop PMI.
• HELOC = a second mortgage that leaves your first loan untouched. Best when you love your current rate, need smaller chunks of cash over time, and can pay it off in five years or less.

But life is rarely that neat. Maybe you bought in 2021 at 2.875% and now you face $40k in variable-rate credit cards. Refinancing into 7% feels nuts, yet a HELOC at Prime + 1% (currently 9%) isn’t much better. That’s where NMHL’s side-by-side cost analysis shines: we run the numbers assuming you roll the cards into either option, factor in the mortgage-interest deduction, and show you the true five-year cost of funds. Most clients are shocked to learn the "expensive" refinance saves $8k–$12k more than the HELOC once tax benefits and amortization are counted.

Before you call anyone, grab a highlighter and your last mortgage statement:

Step 1: Circle your current rate. If it’s within 0.75% of today’s average 30-year fixed (check FreddieMac.com), a HELOC probably wins for short-term cash.

Step 2: Write down how much you need. Under $50k? HELOC keeps closing costs tiny. Over $100k? A cash-out refi often secures a lower blended rate.

Step 3: Check your credit-card statements. If the average APR is above 15%, both options beat the status quo — but only a refi gives you a fixed rate for 30 years.

Step 4: Estimate how long you’ll stay. Selling within four years favors the HELOC; longer stays favor locking a fixed rate now.

Those four lines tell us 80% of what we need. Snap a photo, text it to 555-NMHL, and we’ll text back a preliminary savings figure before you finish your coffee.

Maria, Phoenix: 605 credit score, self-employed house-cleaning biz, $78k equity, $42k cards at 21% APR. Bank of America denied her HELOC because her tax-return income showed only $24k after write-offs.

NMHL used 12 months of business bank statements to qualify her for a 75% LTV cash-out FHA refinance at 6.75%. She rolled the $42k cards into the new loan, dropped her total monthly outflow by $680, and kept the same 30-year term. Even with PMI, she breaks even on closing costs in 14 months and will save $81k over the life of the loan versus minimum card payments.

Had she taken the HELOC route (Prime + 1.5%), her payment would’ve risen every Fed meeting and never paid the principal down. The refinance gave her a fixed finish line and a credit score that jumped to 680 within eight months because revolving balances hit zero.

• Second-Chance HELOC: Borrow down to 580 credit with 85% CLTV on owner-occupied homes in AZ, CA, CO, FL, NV, TX. Rate floats, but you can lock advances into fixed segments for 3, 5, or 7 years.
• 1099-Only Refinance: No tax returns, no P&L. Use the last 12 months of business deposits. Loan sizes $150k–$1.5M, rates starting at 6.625%.
• Veteran Retroactive Refinance: If you closed a non-VA loan before joining the service, we can refinance into a VA IRRRL even with a 580 score, funding fee rolled, no appraisal required.
• Fresh-Start Modification: Already in a NMHL loan and life happened? We can recast your existing balance over a fresh 30-year term with minimal paperwork and $299 in fees — no title escrow needed.

Because we lend with our own money and broker to 35 wholesale partners, we can mix-and-match products until we land on the one that actually closes. That flexibility is why our denial-to-approval flip rate is 62% higher than the industry average.

Book a 15-minute Zoom or phone slot on nmhl.com/schedule. Bring your last mortgage statement, a recent credit report (we can pull one if you don’t have it), and a rough idea of how much cash you need. We’ll email you a color-coded one-page PDF that shows:

• Your current monthly outflow (today’s mortgage + cards + car loans)
• HELOC payment today and worst-case at Prime + 2%
• Refinance payment with cash-out and without
• Five-year and ten-year net cost of each route
• Break-even month and total interest saved

No application fee, no Social Security number required for the estimate. If the numbers work and you want to move forward, we collect documents through a secure portal and typically close in 21 days. If they don’t, you keep the PDF and shop it around — we’re cool with that too.

Feeling confused doesn’t mean you’re lost; it just means you haven’t seen your map yet. Let’s draw it together.