Originally Posted by tjfslaughter
Yes I have heard of it. My Aunt did it.
She had a traditional loan with a fixed rate of lets say 6% with 7-8 years left on it. She took a HELOC at sub 3% and paid off her house, she will make the same payment but now has options if she needs to.
No options a HELOC remains attached to the Real Estate as a 2nd Mortgage , the only benefit she gained was a lower interest, hence accelerating the payoff day if submitting the same monthly payment
Furthermore , a HELOC is mostly prime +, not a fixed APR like the 1st Mortgage usually is
( yeah yeah I know, there are ARMS, Balloons, int only etc 1st mortgages )
Damn, I had to google all these to make it sound like I have an idea of Finances LOL