· Use the HELOC money to pay first mortgage down to 50,000. Continue paying 477.42 per month on the first mortgage of 50,000 and it gets paid off in 129 months with total interest paid of 11,600.08 Total interest paid between the two loans 37,547.48.
If you are wanting to pay off your home faster on your current income, you should look at getting a home equity line of credit or a HELOC as they are called and you can pay off your home in 5-7 years.
Total Loan To Value what is TLTV or total loan to value? – Mortgagefit – Hi Guest, Combined Loan to Value is also known as Total Loan to Value (TLTV). It is the combination of all liens – 1st, 2nd, home equity line, etc.
The HELOC is used as a savings account, using it to pay down the HELOC with your income. I assume you spend less than you bring in. So using all the savings to pay off the HELOC would result in paying off your loan faster. making extra payments on a conventional loan, you can’t get that money back.
Why HELOCs Are Not the Way to Pay off Student Loans.. There are several reasons you should reconsider this strategy. A Home Equity Line of Credit (HELOC – or sometimes referred to as just HEL) allows you to borrow against the value of your home.. And whether we’re talking about a first or second mortgage, there is a lien on the property.
HELOC stands for home equity line of credit, or simply "home equity line." It is a loan set up as a line of credit for some maximum draw, rather than for a fixed dollar amount. For example, using a standard mortgage you might borrow $150,000, which would be paid out in its entirety at closing.
Pay attention to the terms on your HELOC compared with the mortgage you are paying off. Then, you pay your mortgage payment, say $1,000, using your HELOC. You also pay your credit card balance with your HELOC.
A home equity line of credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher-interest rate debt on other loans Footnote 1 such as credit cards. A HELOC often has a lower interest rate than some other common types of loans, and the interest may be tax deductible.