Loan Comparison
Both options turn home equity into cash — the difference is what happens to your existing mortgage. A HELOC leaves your first mortgage untouched and adds a flexible credit line behind it. A cash-out refinance replaces your whole mortgage with a bigger one. With most homeowners holding low pandemic-era rates, this choice matters more than ever.
| HELOC | Cash-Out Refinance | |
|---|---|---|
| Your first mortgage | Stays exactly as-is | Replaced with a new, larger loan |
| How you receive funds | Revolving credit line — draw as needed | Lump sum at closing |
| Rate type | Usually variable (fixed-rate options exist) | Fixed or adjustable |
| Closing costs | Low — often minimal | Standard refinance closing costs |
| Payments | Interest-only during draw period (typically 10 years) | Full principal + interest from day one |
| Best when | Your current mortgage rate is lower than today’s rates | Today’s rates beat your current rate, or you want one fixed payment |
If your existing mortgage rate is below today’s market, a HELOC almost always wins — you keep the cheap first mortgage and only pay the higher rate on what you actually borrow. If your current rate is above market, a cash-out refinance can lower your rate and pull cash out in one move. We run both scenarios side by side on every equity consultation.
Still Deciding?
We'll price both programs with your actual numbers and show you the payment, cash to close, and long-term cost side by side — no credit pull required.
Questions
Cash-out refinances typically allow borrowing up to 80% of your home’s value. HELOCs often reach 80–85% of value including your first mortgage balance. We’ll calculate your exact available equity in minutes.
HELOCs usually close faster — often 2–3 weeks with lighter documentation and sometimes no full appraisal. Cash-out refinances follow the standard 21–30 day refinance timeline.
Close cousins. A home equity loan (second fixed) gives you a lump sum at a fixed rate, while a HELOC is a revolving line. Both leave your first mortgage untouched — we offer both and will match one to how you plan to use the funds.
About Us
CDL Mortgage Services Inc. is an independent, full-service mortgage company. Instead of pushing one bank’s products, we shop multiple wholesale lenders to secure the best loan at the best rate for every borrower.
Purchase, refinance, and home equity — all under one roof, focused on the best loans at the best rates.
Based at 6524 Lonetree Blvd, Rocklin, CA 95765 and licensed in California, Texas, Georgia, Tennessee, Oklahoma & Idaho.
Every file is handled start-to-finish by a licensed loan officer who knows your name and your goals.
Fully licensed and regulated, with award-winning lender partnerships and 35+ years serving borrowers.
Ready When You Are
One application, multiple wholesale lenders, and a licensed loan officer who explains the tradeoffs before you commit.