"According to Forbes, a massive amount of homeowners are taking advantage of this "bank pay-off" secret because of this rising interest rate environment."
Homeowners are tired of not seeing their balance go down on their 30 year mortgages. The cost of living is going up. Families are strained because the breadwinner is having to work more just to make ends meet.
With all those pressing problems, it's no wonder homeowners are now turning to using a HELOC to pay a staggeringly less amount of mortgage interest than they would with their 30 year mortgage. However, despite homeowners refinancing in groves, there are some homeowners who are unaware of this "bank pay-off' secret says HELOC expert Michael Lush.
"I get asked that a lot about HELOC's as well as sounding too good to be true. You pay less interest because the interest is charged on the average monthly balance and the money can move in and out of the account freely. People think there has to be a catch, right? There isn't a catch. It's math, not magic" says Michael Lush.
In fact, successful businesses use similar lines of credit to run their business and pay less interest. Also, during the great recession, a study was done that showed homeowners who had a HELOC instead of a mortgage were 115 times less likely to go into foreclosure. Bottom line, using a HELOC is a much more effective way to pay off a home faster and allow homeowners to build wealth for those with 10% equity and a positive monthly cash flow.
There are some misconceptions out in the marketplace simply because banks make less money on HELOC's than with mortgages and do not educate the borrowers like they should. For example, many mistakingly believe that a fixed rate mortgage is better than a variable rate heloc. However, rates on these lines of credit are lower than fixed rates mortgages usually according to Forbes magazine. One key benefit to using a HELOC is the option of getting an interest only HELOC so there is more cash flow each month and anything extra will go right to principal. This money can flow in an out of the account when needed.
Unfortunately, many homeowners who could actually benefit from a HELOC, don't bother to gather the correct information due to rumors they have heard. It's sad because HELOC's are now allowing the middle class to pass off their biggest debt faster build wealth when they never thought they would.
If you're a homeowner with 10% equity or more in your home along with a positive monthly cash flow, you owe it to yourself to learn more. Join the countless others who are benefiting financially but never thought they would. You may be pleasantly surprised by what you discover.