in your mortgage payment your principle will decrease THAT much more because you have been paying down your mortgage dramatically. We are not saying that you get a $50,000 HELOC and borrow the FULL $50,000 to pay down your mortgage then spend the next 2 or 3 years trying to pay down the large HELOC balance due, which likely WILL have a higher interest rate, as you pointed out. This method suggests pulling out an amount from the HELOC which will allow you to draw down your mortgage balance, but which you can pay back in a short period of time (preferably a month). Then repeat every month there after. The power is being able to use EVERY DIME in your checking or savings account to whack down your mortgage balance and increase principle. But, discipline is key with this strategy and timing too, in this economy it can be more risky to NOT save money for a potential layoff any day now. But, in a more stable economy (or with a secure job) one can use this strategy to put every dollar to use. The key is to NOT use your entire HELOC balance to pay down the mortgage. Use only enough that you will be able to repay in a month or two then start the process over. This is SIMILAR to the strategy you propose, Peter, but it is better because you can put MORE of your money to work paying down your mortgage balance while at