https://replaceyourmortgage.com/ - any thoughts on this

Macquarie loans have been around for a while now
You have to be really on point to make it work

If you try and explain to someone its not the easiest

So you want me to use my HELOC as essentially a debit card? That seems like a risky proposition.

I leverage my HELOC to flip real estate (it acts as cash if buying or can be used as a down payment) or get real estate long enough to refi into a normal loan once I have the $ saved up for a down payment if doing a rental. Commercial loans for the other 80% if I got the loan route.

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I dont think phitiger is paying down his mortgage with the heloc.

It sounds like he is investing his money (and betting that he can beat a 4% return).

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Correct. I have no interest in paying down my mortgage at all.

And my HELOC is currently at 2.49% through my credit union. If/when rates begin to rise I’ll likely begin paying down the debt more. Only been doing this about 18 months or so..

many tips and tricks on how to use these lines of credit not only to pay stuff down but to invest with them. in all kinds of investments. investments that yield far more than the interest you pay on the LOC.

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Correct. I have no interest in paying down my mortgage at all.

And my HELOC is currently at 2.49% through my credit union. If/when rates begin to rise I’ll likely begin paying down the debt more. Only been doing this about 18 months or so..

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An alternative to this (aimed at those considering leveraging into their primary residence, not those of you who do it and want to change methods) is an interest-only mortgage.
I’m on a 7/1 ARM, 30-year mortgage. The first 120 payments are only interest. The last 240 are a standard 20-year term on the ARM. Obviously, no payoff penalty, nothing prevents you from putting equity in if you want to over the first 10 years.


With where rates were ~28 months ago when we went this route, and our age, it made sense to move our “equity” payment into paying down other debt faster (student loan interest isn’t deductible for me, and wife and I combined for around $300K of student loan debt, now down to around $70K here about 3.5y later. This shift has allowed me to refinance my student debt twice, and the balance sheet + rates have gotten to be great. I would probably end “the game” better off with stretching my loan out a bit longer and putting more into a brokerage (already got all my “limited space” accounts/buckets filled in), but I like the idea of getting out from under non-mortgage debt. Then when it’s out, I don’t get a raise, I get a bigger brokerage. Then when year 10 hits or rates rise, I’m in position to refi to another 10-year interest only period (another 30-year term). To maximize the strategy, you would do a cash-out refi at the end of the interest-only period, and having the value of the house on hand in a brokerage, it may be reasonable, but I probably will skip THAT step.




Now, in terms of using a HELOC as a “debit” account, it’s really nothing you couldn’t just do a strict budget and toss every penny at the house and accomplish. It’s gimmicky, and I don’t really want to tie up a ton of net worth in equity while I’m young and can take the risk (house is a little under 1x annual income, we don’t particularly love expensive things or cars, etc). Like PhiTiger said, it’s not for everyone. But if you want to leverage your home, there are a few ways to do it.