Our free heloc payment calculator will help you run different scenarios based on the different information that you type into the calculator. Using a HELOC to pay off your mortgage faster is a great way to save in mortgage interest.
What Is A HELOC?
A home equity line of credit or HELOC, is a bank owned loan that has a set term. The term ranges from 5 all the way to 30 years. The bank will usually go up to 80-90% of the value of the home. They can be fixed or variable interest. HELOC interest in calculated usually on the average daily balance or average monthly balance.
How To Pay Your Mortgage Off Faster With a HELOC
You can get a first lien position HELOC or have it in second lien position. They are both faster than just paying extra payments on a mortgage. According to home equity line of credit expert and co-author of the best selling book, Replace Your Mortgage, Michael Lush says a first lien position HELOC is better because a homeowner can put all of their income into the HELOC account.
Who Should Get A HELOC To Pay Their Home Off Early
Being on a basic budget is important. Also having a 640 credit score or above opens up several more banking options. One of the biggest factors is being cash flow positive. If someone isn't making more than they are spending, a HELOC can have a reverse effect.
Using Our HELOC Payment Calculator
Play around with different scenarios such as one time events like a bonus.