Using a HELOC to pay off my home quickly.

[Blake Schreckhise]

Just heard about a friend of a friend who is using a HELOC with the intention of paying off his home quickly. The basic idea is that you use a HELOC to pay off your original mortgage. Then instead of having your free cash just sit in a savings account making hardly any interest for you, you would sink most of it into paying off the HELOC. From there you would use the HELOC to pay for your living expenses while continuing to put your income into the HELOC.

Trying to explain that quickly, so hope it makes sense. But the basic idea is to lower the amount of principal that you have to pay interest on while you still have access to draw those funds back out to use if necessary.

If you've had any experience with this tactic could you weigh in with the positives and the negatives. It took me a while to understand what was happening but after I got it, it seems to make sense on paper.