our loans, but only collects a payment once a month. Meanwhile, the bank uses our deposited savings and checking to lend to others (at a much higher interest rate than what they pay us) until we draw it out. By converting some of a mortgage loan to a HELOC (even one with higher interest) AND depositing our wages into it, we can decrease the daily balance pretty significantly, even if it's only for a short period of time, before we need to draw the money to pay our normal bills. We can add more fuel to the fire by stashing our savings in there as well. By doing this, we manipulate our own daily balance, pushing it down to benefit us. We simply do our banking through our HELOCs, using them as temporary stopping/holding points for our $$. Every day that our money sits in there is reducing the daily balance and thus our interest. Makes a lot of sense and I can't seem to find any holes in the logic. Anyone else? If so, I'd like to hear your thoughts since I'm getting ready to pull the trigger on this. Thanks a bunch for your attention. December 5, 2010 qwest @ 12:31 pm : Is it beneficial to take a HELOC to pay of mortgage completely?- In this case the the only remaining loan you'll have is the HELOC. For example HELOC for $150K to pay of mortgage on $150K if the home equity is above $250K. Peter M