Does Using a HELOC to Pay Down Mortgage Actually Work?

Does Using a HELOC to Pay Down Mortgage Actually Work?

You’ve probably heard of the concept of using a Home Equity Line of Credit (HELOC) to pay off your mortgage faster. It’s touted as a smart financial strategy that accelerates you to financial freedom. But with so many differing opinions, it’s fair to ask…

Does it actually work?

Does Using a HELOC to pay down your mortgage really work?

At Accelerated Banking, we say it does—and we have a trove of success stories to back it up.

The strategy is straightforward. Instead of chipping away at your mortgage through monthly payments over decades, you use a HELOC to pay a larger chunk of your mortgage upfront. Then, you repay the HELOC itself, which typically has a more flexible repayment structure than a traditional mortgage. This flexible repayment structure can be used to reduce the principal balance of the HELOC at an accelerated rate. At the same time, you don’t lose or sacrifice your access to cash.

The outcome? You could potentially save thousands in interest and shave years off your mortgage.

The compelling argument hinges on the concept of ‘interest float.’ A HELOC works on simple daily interest, unlike a mortgage that is set on amortizing interest. By depositing your income into the HELOC, you’re immediately lowering the principal balance. By doing so, you are decreasing the interest accumulation. With the right financial habits, the debt on your HELOC decreases faster than it would on a mortgage. It frees up equity and saves you large amounts in interest and time.

But let’s move from theory to practice.

Take Michael and Jami, for example, a couple who used the Accelerated Banking method. They were skeptical at first, but after diligently applying the strategy, they’re not only saving a ton of time and interest. They can now focus on building a sizeable nest egg for retirement.

Or consider the story of Agueda, who completely paid off her mortgage and her HELOC. She began using the concept back in 2019. By 2021, she’s able to share that she’s now completely mortgage-free.

These testimonials underscore the fact that using a HELOC in this manner isn’t just a gimmick. It’s a legitimate approach to cash flow management that saves time and money. When paired with some discipline and guidance, it can yield amazing results.

For those who worry about the complexity, it’s all about getting the right support and help. That’s where Accelerated Banking shines. Accelerated Banking provides detailed & personalized plans with ongoing support to ensure that you’re not going it alone.

You might be tempted to dismiss this method as too unconventional or risky. We invite you to look at the evidence. There are plenty of users with successes that speak volumes. the numbers tell an unwavering truth. When done correctly, using a HELOC to pay down a mortgage can propel you faster.

You can read and hear more stories of success at Accelerated Banking Results and Case Studies.