Which Is Better, A Mortgage Or HELOC?

Lynn is retired and lives comfortably on her pension and social security. She doesn't have a mortgage, but she is paying off her home equity line of credit, which has a variable interest rate. Lynn is worried about rising interest rates and wants to know if she should take out a mortgage instead.

Original airdate: January 28, 2018 - Hour 1, Call 3.

Wes Moss is the host of MONEY MATTERS – the country’s longest-running live call-in, investment and personal finance radio show – on News 95-5FM and AM 750 WSB.




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[wsgriffi]

She should use her HELOC as her checking account and deposit all her pension and SS and pay her expenses out of the HELOC. It will be paid off faster with less interest paid.

[TruthOrConsequences]

Here are all the videos you'll ever need to know about the strategy of accelerated payoff of your home...

[bojiam]

In regards to tax deductions.
What if you use your HELOC to payoff your house?
E.g. you owe 100k on a 500k house and borrow 100k from HELOC to payoff, the 100k would be deductible because you USE it to acquire your house?

[dynomax]

How is 1000 a month a couple years on 45k. Oh there he goes gets the calculator.... 3... No more than that. 4. Yeah more like it and add your interest in its prob closer to 5

[TruthOrConsequences]

Get rid of your mortgage and replace it with a HELOC (in 1st lien position). You can pay your debt down in a fraction of the time and be completely debt free. Never, ever, ever re-finance a mortgage with another mortgage...you will end up wasting many thousands of dollars despite the lower rate and the additional cash flow. A HELOC in first lien position gives you flexible cash flow while saving tens of thousands in interest costs as well as a payoff around 1/3 the time of a traditional mortgage. Remember, time and balance are more important than interest rate. It's all math...do the math. I challenge anyone to refute this!

[donnajones-bey]

Should you be still paying off a mortgage AND a HELOC at the same time?

[libertadmatos]

Sounds like she also may have future heirs draining her current and future resources. That needed counseling.

[clarabartha]

Must be nice to be able to deduct your mortgage interest in the States, not in Canada!