is a HELOC replacing mortgage a good strategy?

[Mike Lee]

Hello all, Just bought a condo last year as a personal residence in Chino Hills, CA. I stumbled across some readings about HELOC's and how it helps pay the home mortgage down faster and paying less intrest. On top of that I can still us it as a checking account and still have easy access to the equity built up in the house.

The thought of it is very tempting.  My only issue is i'm afraid i dont know have the knowledge to analyze the situation from all angles and not able to accurately weigh the pros and cons.

any help from this great forum would be greatly appreciated.

[Lorne Hill]

I used a heloc strategy to pay down my mortgage. You have to have equity and positive cash flow. Every 10 months I would take a lump sum out of the heloc and pay down principal on mortgage(1st lien). Then I would pay check park my income to the heloc and pay bills from there( paying alot less interest). It cut close to $50,000 of interest and went from 22 years to 5 years. Mortgage was 3.875% and heloc was 4.5%.....but heloc rate is really a non issue doing this.