HELOC sweep accounts

[Jason Theus]

I've been looking for ways to best use a HELOC on paying down my home quicker.

Can anyone who has or is doing a HELOC sweep give me some direction.

[Kathy Henley]

You have equity in a property, right @Jason Theus? Enough that a lender is willing to let you have access to this value in cash. It is called a Home Equity Line of Credit. When you write a check (borrow,) you will eventually have to pay back the money, plus some interest, to the lender. Is your intention to use money from the equity of property A, to pay down a loan on property B? I am uncertain of your method. Does property B have a terribly high interest rate? 

Here is how I used a HELOC of my primary home (California): I wrote checks from the HELOC and used the funds as the down payment to buy a couple of investment properties in another state. Eventually, I sold the primary home, paid off the original loan, the balance due of the HELOC and now live from the income of my new state properties. It was a risk, but California market is crazy. My way of looking at it was to put my equity to work, to invest my equity for building a future of passive income. I am not sure if paying off your loan is putting your equity to work. Tell me more.