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HELOC to Pay of Mortgage Faster
Posted on 7/1/16 at 3:22 pm
Posted on 7/1/16 at 3:22 pm
Anyone ever tried this? Looks like an interesting concept to pay off your mortgage a lot faster. Thoughts?
LINK
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Posted on 7/1/16 at 3:40 pm to Neil Caffrey
I heard of these about 10 years ago when they first came out but know of no one who has tried it. Sounds like a good way to knock some time off your mortgage.
Posted on 7/1/16 at 3:54 pm to Spec1
I took out a heloc recently to purchase a rental property that cost me $400 total and has 2.2% interest for the first year. If you have more than 25% equity in your home I don't see how you couldn't keep doing this to lower your interest rate. I'm not sure how much you'd actually save though for all the work.
Posted on 7/1/16 at 3:58 pm to baldona
Its sounds good at first. But after running the numbers, it makes more sense to use the extra money that you would be putting into the HELOC and put it into a long tern investment making 4%-6%.
Posted on 7/1/16 at 4:46 pm to Neil Caffrey
quote:
Its sounds good at first. But after running the numbers, it makes more sense to use the extra money that you would be putting into the HELOC and put it into a long tern investment making 4%-6%.
A lot of min/maxers are going to tell you this (and they have a point, particularly if you do a pure a/b analysis), but here's a thought - if your goal is to pay off the mortgage faster - call me crazy, but wouldn't making additional principal payments, just directly on a monthly, quarterly, yearly basis do the same thing without a lot of futzing around with new/additional financing?
What am I missing?
Posted on 7/1/16 at 5:05 pm to Ace Midnight
quote:
A lot of min/maxers are going to tell you this (and they have a point, particularly if you do a pure a/b analysis), but here's a thought - if your goal is to pay off the mortgage faster - call me crazy, but wouldn't making additional principal payments, just directly on a monthly, quarterly, yearly basis do the same thing without a lot of futzing around with new/additional financing?
What am I missing?
Nothing. You can absolutely do this yourself without dropping 3k on this software and thousands more on a HELOC, but if you want to have software do it for you and not think about it, go for it.
Posted on 7/1/16 at 10:38 pm to Neil Caffrey
HELOC has variable rates which outs you at risk on top of it being just borrowing money to pay money you borrowed
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