How H.E.A.P. Works
By utilizing a Home Equity Line Of Credit (HELOC) like your traditional checking account, you can pay off your bills and your mortgage dramatically faster.
By opening a HELOC and using it like your normal checking account you are able to fund lump sum equity reductions to your first mortgage.
Funding two or three of these lump sum reductions will dramatically reduce your mortgage term and help you become debt free.
Did you know that your current mortgage accrues interest every day?
If you take your current mortgage balance and multiply it by your interest rate and then divide that number by 365 you can calculate approximately how much interest you are being charged every day.
For example if your current balance is $200,000 and your interest rate is 6.25% you are being charged approximately $34.25 every day!
If your payment on that loan is $1231.43 per month and you have $1027.50 in interest charges, only $203.93 will be applied to your principal. No wonder the loan will take 30 years to pay off.
HEAP works by reducing the per day interest charges, with the lump sum reductions, which allows more of your payment to be applied to principal thereby reducing your term.