- Southern Illinois

I'm looking for some info from those of you out there that are wiz's with home finances, mortgages, HELOC's, etc.. I recently refinanced my home to a 10 year 3.5% fixed. Basically I knocked 3 years off and dropped my interest 3%. I will be saving a ton of money just by doing this and am excited about paying my home off sooner. Before refinancing I was paying extra every month to the tune of what amounted to one extra payment per year. With my new loan I will again be paying extra, which amounts to 2 extra payment per year.

During the loan process I was asked several times about adding on a HELOC at no extra cost but declined with both competing mortgage co's. I've done some research since then and am wondering if I erred in not doing that. I have more than enough equity in my home to cover a HELOC which I could then use to pay off my first mortgage. If I am understanding the process it seems that paying off the balance via a HELOC will save me even more money due to how the interest rates are calculated.

Is this true? Can someone explain this to me? Have you done exactly this? I've looked online for calculators that compare the two but haven't found any. I appreciate any help anyone can provide.

During the loan process I was asked several times about adding on a HELOC at no extra cost but declined with both competing mortgage co's. I've done some research since then and am wondering if I erred in not doing that. I have more than enough equity in my home to cover a HELOC which I could then use to pay off my first mortgage. If I am understanding the process it seems that paying off the balance via a HELOC will save me even more money due to how the interest rates are calculated.

Is this true? Can someone explain this to me? Have you done exactly this? I've looked online for calculators that compare the two but haven't found any. I appreciate any help anyone can provide.

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