Two ways to use your equity
Equity is the difference between what your home is worth and what you owe. Both a home equity loan and a cash-out refinance turn some of that equity into cash for your kitchen. The big difference is what happens to your current mortgage.
Home equity loan
A home equity loan gives you one lump sum at a fixed rate, with a set monthly payment. Your first mortgage stays exactly as it is, so if you have a low rate, you keep it. You'll have two monthly payments: your mortgage and the new loan.
CapCenter home equity loans run from $50,000 to $250,000, with fixed terms of 15, 20 or 30 years. They're available on single-family primary residences and second homes, and an appraisal isn't required in most cases. The maximum depends on the loan type and purpose, and a loan consultant can tell you yours.
Cash-out refinance
A cash-out refinance replaces your current mortgage with a new, larger one and pays you the difference. You end up with one loan and one payment, at a new rate on the whole balance. If your current rate is well below today's rates, that can raise your costs. If today's rates are at or below yours, a cash-out refinance can make sense.
A hypothetical $75,000 kitchen
Hypothetical example. APR may differ; example only. Rates change daily.
- Home equity loan at 8% for 15 years: about $717 a month in principal and interest, with your first mortgage unchanged
- Cash-out refinance: one new loan for your current balance plus $75,000, at a new rate on the full amount. Compare the new total payment with what you pay today plus a home equity loan payment
Example details: $75,000 15-year fixed home equity loan at 8.000% (8.055% APR): 180 monthly payments of $716.74. Principal and interest only; taxes and insurance not included, so the actual payment will be higher. Unless noted, APR assumes ZERO Closing Costs, no discount points and 15 days of prepaid interest. Hypothetical example prepared November 4, 2026, not a current CapCenter rate offer; subject to credit approval.
Plan the budget first
Kitchen projects often run over, because opening walls and floors can reveal wiring, plumbing or water damage. Get two or three written bids for the same scope, then add permits, appliances, fixtures and a cushion of 10% to 20%. Borrow for the project you've priced, not the most you can get.
How to choose
- Your current rate is lower than today's rates: a home equity loan keeps it.
- Today's rates are at or below your current rate: compare a cash-out refinance.
- You want one payment: a cash-out refinance combines everything.
- Your project is under $50,000: savings or another option may fit better than a CapCenter home equity loan.
What it costs to close
With CapCenter's ZERO Closing Costs, CapCenter pays for or waives the closing costs typically required to process the loan (restrictions apply). On a cash-out refinance, you still fund prepaid interest and escrow, which aren't lender fees.
