All Forum Posts by: Jay P.

@Andrew Postell Thank you for your response. Bank is not suggesting anything to me. I have watched lot of YouTube video about using HELOC to payoff mortgage early.

The HELOC I'm getting is a "FIXED-RATE" HELOC @2.75% APR for the next 5 Years then it becomes variable rate. My current mortgage interest rate is at 3.625%. Basically, I'm getting HELOC for a cheaper rate than my primary mortgage for the next 5-year. Since, I'm getting it so cheap, I would like to put that money to use or rather leverage it to my benefit. However, I do not know if I should put it towards the principal of my primarily mortgage, invest it in the stock market (blue chip stocks) for the next 5 years or just invest it in real estate. I'm currently financially stable and very responsible with my money.

Any comments/suggestions/ideas would be useful. Thanks!

Hello Guys, I'm new to BP. I am thinking about taking out HELOC on my primary home to pay off my primary mortgage faster (I will be doing mortgage recast at the same time to lower my monthly payment). Please advise me on how I should go about using HELOC wisely (I'm very responsible with money and have a stable income). Below is my scenario.

Primary Home Market Value = $350,000

Balance Left on Primary Mortgage = $210,000

Primary Mortgage Rate = 3.625%

HELOC Term That I Will Be Signing Soon = Fixed-Rate HELOC @2.75% (valid only upon initial draw at closing) x 5 years.

I'm thinking of initially drawing 30K HELOC at closing so that I can get 2.75% intro rate x 5 years then immediately throw that initial 30K directly to Principal Balance of my primary mortgage then start paying back 30K HELOC as fast as I can.

If you guys have any other ideas/suggestions, please feel free to share. I would love to find out how I can use HELOC wisely.

Thank You!

Hello Guys, I'm new to BP. I am thinking about taking out HELOC on my primary home to pay off my primary mortgage faster (I will be doing mortgage recast at the same time to lower my monthly payment). Please advise me on how I should go about using HELOC wisely (I'm very responsible with money and have a stable income). Below is my scenario.

Primary Home Market Value = $350,000

Balance Left on Primary Mortgage = $210,000

Primary Mortgage Rate = 3. 625%

HELOC Term That I Will Be Signing Soon = Fixed-Rate HELOC @2.75% (valid only upon initial draw at closing) x 5 years (thinking of drawing about 30K initially)

My plan is to throw that initial 30K directly to Principal Balance of my primary mortgage then pay of 30K HELOC as fast as I can.

If you guys have any other ideas, please feel free to share. 

Thank You!