To aviod confusion, making a debt payment - whether it is on a HELOC or a traditional mortgage - twice a month when daily compounding occurs will definately save some money. But making that debt payment directly to the mortgage company (paying your mortgage semi-monthly for half the 30 year payment and half the extra payment) will result in a greater savings than using a HELOC shuffle because you are borrowing money at a lower interest rate and paying it back at the same rate (two debt payments per month). I stand by my assertion that it is not possible to borrow money at a higher interest rate, make repayment on the same schedule and come out ahead. Making payments on debts with a different payment schedule is still not a valid comparison of the two debt repayment methods. Of course, if you already have a monthly mortgage and your mortgage company will not accept semi-monthly payments, that is a different issue entirely and utilizing a HELOC shuffle to get around the problem you have already created for yourself may make sense in that case. Doug @ 9:42 am : Peter, let me first state that I'm not selling anything here and won't be selling anything here. The point is that by using a HELOC you can pay the MAX amount possible each month to your mortgage company to reduce your mortgage by a larger-than-normal percentage, while at the same time your paycheck is plowed back into the HELOC every