Using HELOC to pay off mortgage

[Joseph Liechty]

Hello,

Does anyone have experience using a HELOC to pay down a mortgage? I recently heard about this strategy and I'm intrigued. I don't understand how this is more beneficial than just paying more towards the principle every month since I would have to pay interest on the HELOC money and I don't have to do that when I pay extra principle out of my pocket. Is the benefit the amount you are able to contribute up front as it reduces the amount of amortized interest over time? I'm not a real estate agent nor a CPA so English please when responding.

Thanks for any help!

[Keyonte Summers]

I'm doing something similar on a home I own free and clear but I'm using my HELOC for all cash offers on rentals and using the cash-flow to pay down the HELOC to rinse and repeat. My theory is that because I own a property free and clear it creates more cash-flow allowing the HELOC to be paid quicker as-long as a tenant is in place.