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 (HECL) 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 at
Home Equity Line of Credit