Can I pay off my mortgage faster with a HELOC?
Answers | 3
"It depends" is the answer to your question. If you mean in comparison with a 30-year loan, the answer is "probably", due to the fact that most HELOCs have a draw period of 5-10 years, followed by a repayment period of (typically) 20 years. Of course, you can pay off virtually any loan as fast as you like, so there's no restriction on paying off a 30-year mortgage in a year, or 6 months for that matter. I would need more info, such as "faster than a ______ loan" and the specific details on the HELOC to give you a more detailed answer, but reading between the lines, it appears you're asking if you'll save money on interest with a HELOC, and the answer to that is "almost always not."
This is all dependent on what you decide to apply as your payment every month.
Yes you can. By refinancing your entire mortgage into a 1st lien position heloc and treating it like your checking account. You put all your income into the heloc and you pay your bills /expenses out of the heloc. Any leftover positive cash flow stays in the heloc which brings down the daily interest and balance. Using this strategy with a positive cash flow will payoff your home on average of 5-7 years.