You take your entire paycheck you deposit it into the home equity line of credit to pay down your mortgage You then write all of the checks for your bills out of the home equity line of credit You use money from your home equity line of credit to pay your mortgage your electric bill all your other bills You will pay off your mortgage depending on how much money you make in somewhere between three and twelve years instead of 30 years Whatever you do don’t ever refinance a mortgage Refining a mortgage to get a lower payment is a con job They tell you the bank tells you the storyline they give you is that while you get a home equity line of credit to lower your payments You buy into that But what they know that they’re not telling you is when you refinance that mortgage you restart the terms of the loan So now it’s a new 30 years and the majority of the payments for at least the first 7 years goes to interest So you’re going to end up paying more at a lower interest rate with a lower payment on a refi than you would have ended up paying the bank if you had just kept on making the same old mortgage payment.
