How to pay your mortgage down rapidly using an equity line of credit


Disclaimer: this method will ONLY work if you have a portion of your regular income left over at the end of the month AFTER charitable giving, savings, and paying all of your bills!


Here is what you do:

Step 1 – Open a home equity line of credit for an amount that brings the combination of your current first mortgage plus the new equity line to no greater than 90% of the value of your home – in our example we will use an equity line for $20,000.

Step 2 – Borrow half of the line [$10,000] and pay it as an additional principal payment to your first mortgage.

Step 3 – Deposit all of your regular pay into the home equity line of credit as a payment.

Step 4 – Write checks for charitable giving, savings, and pay monthly bills from your equity line of credit.

Step 5 – Continue depositing your regular pay and paying monthly budget items from the equity line until the equity line is paid down to a zero balance.

Step 6 – Start over again at step 1 and repeat the process. Continue this method until your first mortgage is paid off entirely.


  1. Include all budget items such as charitable giving, savings, gifts and bills in your monthly budget. Again, you MUST have money left over from your regular pay at the end of the month after paying all budget items for this method to work!
  2. Never borrow above 50% of the equity line of credit.
  3. Pay down higher interest rate debt using this method before you begin paying down your mortgage.

Why does it work?
The equity line of credit pay-down method works by focusing all of your monthly pay on budget items and debt pay-down. The extra money left over after all budget items have been satisfied is what pays down the equity line over time.  Paying your regular pay into the equity line keeps the balance low for monthly interest calculations.  After several months the equity line should be paid off again, and you can repeat the process.