Thu, 24 March 2016
315-Is Mortgage Acceleration (Replacing Your Traditional Mortgage with a HELOC) Really a Good Idea? Interview with Bill Westrom from www.TruthInEquity.com
On Episode 133 of the show, I had a listener ask me for my opinion regarding the concept of "mortgage acceleration."
Basically, it's the idea of taking out a HELOC on your house instead of (or in addition to) a traditionally amortizing mortgage, putting all your income against the HELOC and then paying your bills out of the HELOC.
The key idea with this strategy is that the average daily balance of your account is lower, reducing your interest payments.
In Episode 133, I was critical of the idea and the book that espoused it.
Today, I've brought the author of that chapter in the book on to defend the idea of mortgage acceleration as vigorously as possible.
Enjoy the show!