A home equity line of credit, or HELOC, is a little-known but very valuable tip to keep more of your income and pay off your mortgage much quicker. Not everyone knows about this trick, and it can be kind of complicated to understand, but an experienced HELOC trainer can help you make sense of it all. These lines of credit allow you to use nearly all of your income to pay off the principal of the loan, which means you are able to pay off the house entirely in a much shorter period of time.
Just the Basics
HELOC details can’t be explained entirely in this article, but we can give you the basics. A HELOC is sometimes considered a second mortgage, and it usually comes with a much lower interest rate than a standard mortgage does. Many people use their HELOC, which is sort of like a credit card, to pay off their mortgages, then they pay off their HELOC next. Companies such as Replace Your University are here to help you understand the concept a little better, and they can be found online.
Know the Facts Before You Decide
HELOCs can be used for more than just paying off your mortgage, of course, but when you use it for this purpose, it can save you a lot of money. Usually, a HELOC trainer has a website that goes into more detail on this trick, but it is definitely something to consider when you’re looking for ways to save money and you don’t feel like taking 15-30 years to pay off your home.
