Pay Off Your Home in 5-7 Years?
Simulate using a First Lien HELOC as your primary checking account to drastically reduce interest and pay off your home faster.
First Lien HELOC Calculator
A "First Lien HELOC" replaces your traditional mortgage. By depositing your entire paycheck into the HELOC (lowering the daily balance) and paying bills from it, you can minimize interest charges. This calculator simulates this "Velocity Banking" strategy.
Simulate Payoff Speed
Free Cash Flow
$2,000
Applied to Principal / Mo
Est. Payoff Time
10.2 Years
vs 30 Years Traditional
Total Interest
$145,000
Estimated Lifetime Cost
Frequently Asked Questions
What is a First Lien HELOC?
A First Lien HELOC is a home equity line of credit that is in the "first position," meaning it pays off and replaces your existing mortgage. You no longer have a traditional mortgage payment; instead, you manage your debt through the line of credit.
How does it pay off the loan faster?
The strategy involves depositing your entire paycheck into the HELOC, which immediately lowers the daily average balance and thus the interest charged. You then pay bills from the HELOC as needed. The "free cash flow" (Income - Expenses) naturally stays in the account, reducing the principal much faster than a standard amortization schedule.
What are the risks?
The biggest risks are variable interest rates (which can rise significantly) and lack of discipline (spending the available credit instead of paying down the debt). It requires strict budgeting to be effective.