Loan Comparison
Both let you tap equity without selling. The critical difference is repayment: a reverse mortgage requires no monthly principal and interest payment for as long as you live in the home, while a HELOC requires monthly payments and can be reduced or frozen by the lender. For retirees on a fixed income, that distinction usually decides it.
| Reverse Mortgage | HELOC | |
|---|---|---|
| Monthly payment required | None while you live in the home | Yes — interest-only, then principal and interest |
| Age requirement | 62 or older | None |
| Income qualifying | Light — focused on ability to cover taxes and insurance | Full income and debt-to-income underwriting |
| Line availability | Growing line of credit that cannot be frozen | Lender can reduce or freeze the line |
| Closing costs | Higher — includes FHA mortgage insurance premium | Low to minimal |
| Repayment trigger | When you sell, move out, or pass away | On the loan’s set schedule |
| Best for | Retirees wanting cash flow relief and payment-free access | Working homeowners who can service a payment |
If you are 62 or older and want to eliminate a mortgage payment or create reliable retirement cash flow, a reverse mortgage does something no HELOC can. If you are still working, comfortable with a payment, and want the cheapest access to equity, a HELOC costs far less to set up. You must still pay property taxes, insurance, and upkeep on either.
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
Yes. You keep title, and the loan is repaid when you sell, move out permanently, or pass away. You remain responsible for property taxes, homeowners insurance, and maintaining the home.
No, and that is one of its biggest advantages. An unused reverse mortgage line grows over time and cannot be reduced or frozen by the lender, unlike a HELOC.
A HELOC, by a wide margin — often minimal costs. Reverse mortgages include an FHA mortgage insurance premium and higher upfront costs, which is why they suit long-term stays rather than short-term needs.
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.