HELOC to Pay off Your Mortgage

Editorial Note:

HELOC Strategy to Pay Off Mortgage

HELOC’s Strategy to pay off the mortgage faster seems like an intriguing idea where you can float the banks’ money. This method works with any revolving credit. It has many fancy names, like Velocity Banking or Accelerated Banking. It does work but carries so much complexity and risk that we think there are better ways to use your money.

We took the example of someone with $500,000 in the mortgage, a $20,000 line of credit, and $90,000 in income. We went with a small line of credit versus an actual HELOC because it better illustrates an example of why this tactic is flawed.


  • Pay Off Mortgage Faster
  • Personal P&L
  • Velocity Banking
  • The Result
  • Problems with Velocity Banking
  • Alternative Way 1
  • Alternative Way 2

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