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First Position HELOC

A "First Position HELOC (Home Equity Line of Credit) with Integrated Checking" completely changes how you can pay down your mortgage balance faster because it does not use compounding interest, amortization schedules and complex formulas to determine that you don’t get much credit toward paying down your mortgage balance, leaving you with a whole lot of interest paid to the bank and not much equity.


A First Position HELOC has these features instead:

1.      Your checking account and mortgage are merged into one account.

2.      Deposits to your checking account automatically pay down the loan balance AND PRINCIPAL (Principal is what your interest expense is calculated on, so a lower principal means lower interest!)

3.      No minimum mortgage payment is needed anymore – deposits to your checking can be sporadic, they’re not going to report you to the foreclosure department. 

4.      You can withdraw from your checking account as easily as you currently do for bill pay, debit cards, etc.

5.      If you ever want to invest in a big project, you don’t need to jump through the hoops of a cash-out refinance.  Just write a check.  Access to your equity is that easy.


But you must qualify:

1.      Minimum 700 credit score if on your personal property, or 720 for an investment property.

2.      Have 10% equity.

3.      And, oh yeah, actually submit a simple application.