Should I consider a Heloc loan to pay off mortgage

3 Replies

I'm so looking forward to having my house paid off. I'd like to explore whatever options there may be to have it done asap.
I currently owe $37K, at 5.95% interest. This is the origianl loan I took out for my house. Unfortunately, I was in financial hell after the recession and not able to refi when interest rates fell.

My House is worth maybe $220K. I have an alright credit score, I'm guessing that it's around 620-650. I have no other debt besides a few hundred on my cc. My monthly mortgage payment is $777 and I've been paying $1000 a month for a couple years now. I'd pay more if I could, but I'm pretty much at my limit. Last month I paid $190 in interest and $646 went to principal.

I've not called any banks yet to run my numbers. I'd like to get better educated on Heloc loans and hopefully an unbiased opinion as to whether a Heloc would be a sound move to pay off my home loan.


Not understanding how borrowing more will help you pay off your mortgage. This would be on your owner occupied house? Leaving the first in place and getting a HELOC in second position? And then what? If you want the house paid off, keep paying off the current mortgage.

Don’t refinance, which will reset the amortization, i.e. more interest up front for each payment in the early years. You are on the backside of the amortization, where you pay more principal with each payment. Make your extra payments to principal only, and keep going. 

That said, you are in a risky position, unless you have a big emergency fund of cash. If something goes wrong, as in you lose your income, all that equity is at risk. 

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I paid off my mortgage w a HELOC loan and would never do a mortgage again. A mortgage is close ended. Once money goes in, it's gone. My HELOC is open ended so for 10 years I have access to that money. I put all my liquid cash on the account to reduce interest. There were z e r o closing costs. For me , it's working well. Research you tube to learn more. Good luck!