Are Accelerated Mortgage Programs Using a Home Equity Line of
Credit Effective?
As with many personal finance issues, there is much mis-information around using a Home Equity Line of Credit as a first mortgage or as a way to pay down a mortgage more quickly.
This report, written by Todd Langford and Elizabeth Hagenlocher, aims to prove, both conceptually and numerically, that prepaying a mortgage is not only inefficient, it puts the payor in a precarious financial position.
Todd pulled information from a presentation on using a HECL to prepay. He demonstrates where the mis-leading information is and the mental confusion caused by the sales pitch.
Enjoy the report, feel free to share it, and if you have more questions, contact the TC team.
