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Why Do I Need A HELOC?

A HELOC is a Home Equity Line of Credit that can be secured by a financial instituion. It is a loan that allows the homeowner to borrow money using their house as collateral. In order for the Money Merge Account program to be successful, you must have a HELOC available. The HELOC allows you to utilize existing banking tools to pay off your mortgage quicker.

In order for the Money Merge Account program to work correctly, the HELOC must have certain characteristics.

  • The HELOC must be open-ended which allows for mutliple adjustments to the principal each month.
  • The HELOC must have an interest only payment option.
  • The HELOC needs to have a variable rate.
  • You DON'T want the HELOC payments automatically withdrawn from another account.

I set up my HELOC at the same bank where I do my primary checking. This allows me to easily transfer money from my checking account to my HELOC and from my HELOC to my checking account.

Aren't You Paying Extra Interest?

The Money Merge Account is setup so that your HELOC balance owed remains as low as possible. The lower the amount owed on your HELOC, the less money your are using, and the least amount of interest is being paid. You will use your income to make sure that the HELOC balance stays as high as possible. The Money Merge Account program takes into account extra interest payments in its calculations. You still pay off your mortgage faster and can potentially save thousands of dollars in interest!