eposit your check, but you deposit it into your HELOC instead of your checking account. You go to the store to buy some groceries. You pay them with you debit card or checks, but you use the ones tied to your HELOC instead of your checking account.

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Hello, Big Nick at the shop here.

You will laugh at the simplicity of this plan, and, at the same time, think what a great idea it is. It was a real light-bulb-going-off-in-my-head type of feeling for me.

So here it is: "Replace Your Checking Account with A Home Equity Line Of Credit and You Will Save (Or Make) A Ton of Money."

That is all you really need to know, but let me give you the how and why of it so you can really understand.

A Home Equity Line Of Credit (HELOC) has 2 unique features that no other home loan offers that make this possible. They are:

1. It is a Revolving Account—

Just like a checking account or a credit card. That means you can deposit money into it and take it out when you need it. That is why you get a debit card and checks when you open a HELOC.

2. Interest Compounds Daily Instead Of Monthly—

While this may sound like a negative, it is really a benefit. I will explain below.

Say you just got paid at work. You go to the bank as you normally would to deposit your check, but you deposit it into your HELOC instead of your checking account. You go to the store to buy some groceries. You pay them with you debit card or checks, but you use the ones tied to your HELOC instead of your checking account.

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unt with A Home Equity Line Of Credit and You Will Save (Or Make) A Ton of Money."

That is all you really need to know, but let me give you the how and why of it so you can really understand.

A Home Equity Line Of Credit (HELOC) has 2 unique features that no other home loan offers that make this possible. They are:

1. It is a Revolving Account—

Just like a checking account or a credit card. That means you can deposit money into it and take it out when you need it. That is why you get a debit card and checks when you open a HELOC.

2. Interest Compounds Daily Instead Of Monthly—

While this may sound like a negative, it is really a benefit. I will explain below.

Say you just got paid at work. You go to the bank as you normally would to deposit your check, but you deposit it into your HELOC instead of your checking account. You go to the store to buy some groceries. You pay them with you debit card or checks, but you use the ones tied to your HELOC instead of your checking account.

It is e

that no other home loan offers that make this possible. They are:

1. It is a Revolving Account—

Just like a checking account or a credit card. That means you can deposit money into it and take it out when you need it. That is why you get a debit card and checks when you open a HELOC.

2. Interest Compounds Daily Instead Of Monthly—

While this may sound like a negative, it is really a benefit. I will explain below.

Say you just got paid at work. You go to the bank as you normally would to deposit your check, but you deposit it into your HELOC instead of your checking account. You go to the store to buy some groceries. You pay them with you debit card or checks, but you use the ones tied to your HELOC instead of your checking account.

It is e

d and checks when you open a HELOC.

2. Interest Compounds Daily Instead Of Monthly—

While this may sound like a negative, it is really a benefit. I will explain below.

Say you just got paid at work. You go to the bank as you normally would to deposit your check, but you deposit it into your HELOC instead of your checking account. You go to the store to buy some groceries. You pay them with you debit card or checks, but you use the ones tied to your HELOC instead of your checking account.

It is e

eposit your check, but you deposit it into your HELOC instead of your checking account. You go to the store to buy some groceries. You pay them with you debit card or checks, but you use the ones tied to your HELOC instead of your checking account.

It is exactly how you do it now, except it is sourced from your HELOC, not your checking account.

I know what you're thinking; "Well great Nick, but how the heck is it going to save me money?"

Do you remember how I said the interest compounds daily? Go grab your bank statement from your checking account. Do you see were it tells you what your starting and ending balance is? You will also see something that says "Average Daily Balance." That means with all of the deposits and withdrawals, this is the average amount you had in the account. If you park this money into you HELOC it will lower the balance of your loan, thus lowering your payment. Because it compounds daily, it does not matter if you are constantly making deposits and withdrawals, you still benefit. Any amount you deposit into the HELOC above your basic interest goes 100% to lowering the principal balance. Let us work with some hard number so you can see it in action.

Say you have a $150,000 HELOC at 8%. This would make your full payment $1,100, with $1,000 of