re: Any Velocity Banking advocates on here?

quote:

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-“chunk” payments chip away at the loan balance much more quickly than additional payments do, so each “normal” payment ends up going more towards principal, and therefore building equity much more quickly.

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Think about this more carefully: if you want “chunk” payments, you can save your cash for 2-3 months and pay it as a lump sum. No dang different than a chunk of cash from the HELOC.

You are heavily leveraging your primary residence...a job situation change, major illness, unplanned pregnancy (it happens), major household repair (roof, sewer, AC, heat) means that cash you’re diverting to pay the HELOC back is now needed elsewhere. What sort of liquid cash reserves do you have?

Is a second job, overtime, or changes in budget/lifestyle a better choice to increase your cash flow? Maybe. Borrowing your way out of debt (mortgage) is a risky proposition, and I can think of a whole slew of common-enough occurrences that make the scenario a poor choice for my level of risk tolerance.