Using a HELOC strategically can reduce daily interest and potentially help you pay off your mortgage

You take your entire paycheck, you deposit it into the home equity line of credit to pay down your mortgage. You then write all of the checks for your bills out of the home equity line of credit. You use money from your home equity line of credit to pay your mortgage, your electric bill, your all your other bills. You will pay off your mortgage, depending on how much money you make, in somewhere between 3 and 12 years instead of 30 years. Whatever you do, don't ever refinance a mortgage. Refying a mortgage to get a lower payment is a con job. They tell you, the bank tells you, the story line they give you is that well, you re you get a home equity line of credit to lower your payments, but you buy into that. But what they know that they're not telling you is when you refinance that mortgage, you restart the terms of the loan. So now it's a new 30 years and the majority of the payments for the at least the first 7 years goes to interest. So, you're going to end up paying more at a lower interest rate with a lower payment on a refi than you would have ended up paying the bank if you had just kept on making the same old mortgage payment. — Yes, I've been teaching this concept for nearly a decade now. And the reason why this works is because a home equity line of credit uses daily interest as opposed to a mortgage that uses monthly interest. So, by putting all of your paycheck into the HELOC, it lowers the daily balance, which subsequently at the end of the month, you'll actually end up paying less interest than you would have on the mortgage, allowing you to pay down the HELOC and the mortgage a lot faster.