HELOC to Pay off Your Mortgage: Is It a Good Idea?

Editorial Note:

HELOC Strategy to Pay off Mortgage

HELOC 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. There are even a bunch of fancy names for it like Velocity Banking or Accelerated Banking. It does work but carries so much complexity and risk, that we think there are way better ways to use your money.

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