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You didn’t pay any interest on the HELOC. That rate is typically higher than the first mortgage. And deductibility of the HELOC interest is unlikely.
Most mortgages allow you to make extra payments to principal, so why not just do that? In both cases your payments don’t decline because the first doesn’t adjust unless you do a refi. So I’m not seeing an advantage to using the HELOC.
Couple of disadvantages would be it has to lower your credit score and it unnecessarily uses debt capacity. If you have a good investment that you are funding with the HELOC, it could make sense I suppose.
Would like to hear others’ opinions.
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