All Forum Posts by: Lorne Hill

I will be out of town, but still interested in attending one of these meetings.

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.

John Leavelle thanks for the input. The 15% is an opportunity I have( I did not set rate). Wanted input because on paper it works very well. Wasn't sure if i was missing or overlooking something. Going to find out more details Wednesday

Ok, looking for insight on my plan to get some income going:

I refinance primary home and get a heloc as 1st lien at $192,000(value at $240,000), at 2.74℅ for 1st 12 months then 4.75℅ for the next 9 years of draw period.

I take $100,000 and loan it at 15℅ for 1 year term and get $1250 Mo. Cash flow. At the end of 1 year term both intro. rate and investment apply it back to heloc and balance will be $58,000....also I will be pay check parking into the heloc.

Thanks for reading and any info about this deal.

Hello,

 I have been looking at these forums for a few weeks now (great information) and decided to join because I found that I had some answers to questions from my own research.

As of now I am currently trying to get a HELOC to get access to my 50% in equity in my residence. Then use that cash for income generating investments. I plan to be debt free in 40 months and then use my Heloc for down payments for REI.