While a refinance has higher closing costs than a HELOC, the rates of interest may be mounted or adjustable and are typically lower than a HELOC. Fees are lower for a HELOC than a refinance, Mittal says, however the interest rates are adjustable and usually a little larger than rates for a first mortgage. Most HELOCs have an initial draw interval of 5 to 10 years when a house owner pays interest on the balance, followed by a repayment period of 10 to 15 years throughout which homeowners make fully amortized funds. Homeowners with enough fairness and good credit can …