10 years. For a complete guide to using your home to pay for your home, get the Let Your Mortgage Make You Rich kit, consisting of a 96-page workbook and several companion ebooks on fixing your credit, real estate, and becoming wealthy. March 12, 2008 July 6, 2008 Heloc @ 2:57 am : What about the HELOC payment? You borrowed $5000 at the beginning of each year, if you pay it off over the course of the year, you have to pay an additional $435/month, or the HELOC balance would be $5430 at the end of the year. You do save $119,480 off of the interest on the mortgage, but you're doing so by paying extra principal. If you just paid the $435 HELOC payment as extra principal each month, you would save $121,587 in interest over the life of the mortgage. Why bother borrowing it and paying it back? The Great Mortgage Revolt @ 7:26 am : Hello Heloc - thanks for opening a discussion. I cannot comment on the numbers you proposed, because they are incomplete for making calculations. Missing info: term of loan, interest rate, interest rate on HELOC, family's discretionary income (or even net income). However, there are some general principles on which I can comment. 1) The HELOC should be repaid painlessly by holding all the income until it's needed for bills. Therefore, interest accruing on the HELOC should amount to about 1/2 the going rate. 2) If it takes a family 12 months to