Heloc Strategy to pay home mortgage down

[Salvador Carlton]

I recently watched a video in which one of the strategies besides buying Real Estate Investment properties was to use your Heloc to pay down your home mortgage because of the simple interest versus amortization schedule.  For example you have a Heloc for 70K and you send 25K to your mortgage for principal only payment.  You would direct deposit your income into the Heloc and use it as a normal checking account to pay Heloc down, bills, etc. You could still use the remaining of the Heloc to buy investment properties and take a distribution of the rents (if you want of course tax implications might be applicable) to pay down the Heloc and repeat process over and over.  It was also mentioned using your 401K to pay down your home mortgage as another avenue.  I was wondering if someone has used such strategy and their thoughts on it?

[Joe Villeneuve]

Bad math. All you're doing is making extra payments now...and adding interest charges.  You're using your money to make these payments, when your tenant was using their money before.  Keep this in mind, the reduced interest doesn't happen until the end of the mortgage schedule, and any money source that you use of yours to put into the property is a cost to you.  If the source of these funds comes from the rent, then the tenant is making the payments for you...don't help them.