First Lien HELOC Calculator
Use this 1st Lien HELOC calculator to calculate your potential cost savings by replacing your mortgage with a 1st Lien HELOC. See your payment schedule, total interest costs between your mortgage and HELOC, and how much faster you can pay down your home.
Getting Started with the Internet's
#1 First Lien HELOC
Calculator
New Home Purchase
Enter your current mortgage details and information to compare against a First Lien HELOC refinance option.
Mortgage
Enter your current mortgage details and information to compare against a First Lien HELOC refinance option.
Mortgage
Enter your current mortgage details and information to compare against a First Lien HELOC refinance option.
Escrow
Monthly Net Income
Your household income is0 %
of national averageThis is your household take-home pay after taxes, etc.
Total Monthly Expenses
Total Monthly Spend (Minus Total Mortgage Payment)0 %
of national average
Remember to include your gas, groceries, phone,
internet, etc.
Do not include your mortgage payments
in this figure
Calculate Your Personal Cash Flow
Your Monthly Household Cashflow
Income - Expenses = Cashflow
$ 0
First Lien HELOC
Based on your information,
our calculations show
you are
The interest rate exceeds
the rate of paydown in your numbers.
We do not recommend this strategy for you at your current Cashflow
You could Save
$200,000
on the total interest cost of your home
First Lien HELOC
Mortgage
How Fast You'll Pay Off Your Home
14 Years
By switching to a First Lien HELOC and applying the Maximized Cashflow Strategy,
you would pay off
your home years faster.
Estimated Pay Off Time
Want to see more details?
Ready to unlock the details of how to pay off your home in 21.25 years?
Want to see a side by side comparison against your current mortgage? Provide your information to reveal your home pay down strategy.
Book a Consultation To Run Through Your Numbers
Your Breakdown Results Are On the Next Page
- Potential Savings
- Mortgage
- First Lien HELOC
- Side by side comparison
First Lien HELOC
Strategy Plan
Custom developed for:
About us
FirstLienHELOC.com is a community driven movement to help educate American Homeowners about better strategies to pursue financialfreedom We work across the US to educate and empower homeowners and financial consultants with modern techniques and finance procucts to better their lives, increase their net wort, and decouple from multi-decade debt. If you're looking to grow, check out community and courses online for additional information and education.
How to Use This Guide
In this document we will outline the strategy thousands of homeowners are using to pay off thier homes in as a little as 5-7 years and save tens-to hundreds-of thousands of dollars in interest cost. we'll review how both mortgages and HELOCs work, HELOC can be a much better product, and will show you how to do side-by-side comparison of your existing mortgage vs what you could save with a HELOC (based on your current financial.)
At the end of this guide,we'll outline next steps for you to take to achieve financial success, and we'll invite you to participate in our online community to work in a step with others pursuing a similar financial journey.
Your Personal CashFlow
Simpy put, this is your net income, or your total monthly take-home pay. Take the total (gross) income that you makae monthly, and subtract your fixed cost or other expenses to find average net monthly income. This is an extremely important figure, because this will be the basis through which you will be able to pay off you home in a fraction of the time. Please note –do not include your mortgage payments in this figure, we will cover that later on.
1. Income
Your Monthly Income –
Whether your W2 / Employee income, you take distributions from an equity portfolio, your're a business owner, you own rentals, or maybe have some sort of pension, you'll want to add up all of your income streams from your household into one total gross monthly income. If your income is consistent it's easy to calculate this. If it is variable in nature (ie. commision, bonus, overtime, self-employed,) then you can take the average of the past 6 or 12months of your income to get a usable number.
2. Expenses
Your Monthly Expenses –
This figure will include all fixed and non-fixed expenses, including debt paymnets (do not include your mortgage), your utility bills, your consumables like food and entertainment, your recreational activities, and any additional costs you might need to pay on a recurring basis. Think of this as your total monthly spend.
3. Budget
You'll want to use some sort of budget to track and manage your financial income and expenses. Whether you use an App, or a spreadsheeet, it's a great way to keep a pulse on your financial performance. Want to know about budgeting? Check out this guide on
https://firstlienheloc.com/articles/budgets
4. Your Personal Cashflow
Once you've figured out your income, expenses, and budget, you'll be able to calculate your net income. This is a simple calculation (net income – total expenses) = personal cashflow. This figure is used to calculate how much you can alot monthly to pay down the principal balance of your home loan.
Your Personal CashFlow is:
Your Mortgage Paydown
Understanding amortized loan
The mortgage has been a staple finance product for American homeowners for more than half a century. Backed and subsidize by the US Federal goverment, this loan products has its advantages and disadvantages. One thing that is important to know is that with mortgage, you are paying a majority of the interest (money paid to the bank for lending your balanace of the home) up front. This means that in the first 10-15 years of your payments, between 50-75% of your payment is just going straight into the bank's pocket, which means it's NOT going to you. When you refinance you go back to the begginning of the process and give the bank the majority of your payment all over again. The bank love this, because it uses your money over and over to make them richer, and puts you behind in your journey toward financial stability.
Amount In Interest You'll Pay for Your Mortgage:
Cost of Your Home:
Effective Interest Rate:
Your Alternative –
the First Lien HELOC
Understanding the new way to finance home
First Lien HELOC? Huh? What is that?
You've probably heard of a second lien heloc, one that sits after the mortgage and lets you tap into your home's equiity. But did you know that you can replace your mortgage with a HELOC and get the best of both words in an “all in one mortgage product?”
Simply put, a First Lien Helocs acts like a giant credit card that is secured against the value of the house. It calculates interest based on the previous period (month's) average daily balance. This means that as you pay down your principal balance and gain equity in your home, the interest you pay will directly reduce inline with the balance, on a daily basis. So when you implement a high velocit pay down strategy, you'll be rewarded with paying a tremendous amount less in interest.
Remember – even with “good” interest rates on a mortgage, over the course of 30 years, you still pay about as much interest as you do for the actual price of the home. That means that you will usually pay for your home twice, like buying a home for yourself and buying a home for the bank!!
But with the first Lien HELOC and the strategy we are sharing with you, you can reduce that by half or even to one third of what you otherwise would have paid.
Sound interest? Let's have a deeper look.
Cost of Your Home:
Interest Rate:
Effective Interest Rate:
Amount You'll Save with this strategy:
The difference
Comparing the two loan products
 Current Mortgage |
First Lien HELOC |
|
|---|---|---|
| MORTGAGE TERMS | HELOC TERMS | |
| Current Principal Balance | ||
| Annual Interest Rate | ||
| Years to pay off | ||
| Effective Interest Rate | ||
| ESCROW INFORMATION | ||
| Annual Homeowners Insurance | ||
| Annual Property Taxes | ||
| Annual Total | ||
| PAYMENT INFORMATION | ||
| Average Monthly Payment | ||
| Monthly Escrow Payment | Total | |
| LOAN PERFORMANCE | ||
| Total Loan Cost | ||
| Total Interest Paid | ||
| Total Interest Percentage | ||
| Maximized Cashflow Strategy |
|
|---|---|
| HELOC TERMS | |
| Current Principal Balance | |
| Annual Interest Rate | |
| Years to pay off | |
| Effective Interest Rate | |
| ESCROW INFORMATION | |
| Annual Homeowners Insurance | |
| Annual Property Taxes | |
| Annual Total | |
| PAYMENT INFORMATION | |
| Average Monthly Payment | |
| Monthly Escrow Payment | |
| Total | |
| LOAN PERFORMANCE | |
| Total Loan Cost | |
| Total Interest Paid | |
| Total Interest Percentage | |
How to implement this strategy
Strategic ways to cut your mortgage in half
5. Exploit the way that intrest is calculated
First, to exploit interest calculation, you'll need to regain control of the way that your loan accumaltes interst. Generally this will mean that you'll need to get out of any finance poroducts that rely on an amortization schedule. Once you'vw switch into a simple interest loan product, you can then accelerate the time line of pay down, which will “hack” the way simple interest is calculated and drastically reduce the amount of interest you pay to the bank.
6. Shorten the time that you borrow the principal
Use the flexibility of your First Lien HELOC to maximize the paydown of your principal balance with your new cashflow. This will drastically reduce the term and interest cost of the loan.
7. Maintain our budgets and stay the course
Yes – you have access to a lot of capital now through your home's equity – but don't use it. Stay the course and focus on rapidly paying down the principal balnce of the home. Stick to your budgets and keep your new cashflows as high as possible.
8. Maintain paydown velocity
Continue to allocate your income to your paydown as much as possible, and use your Personal Cashflow. From our aggregate calculations, most American Homeowners will be able to reduce the total term of thier home loan from 30 years down to 10 years or less.
According to your income and expenses, you can consistently contribute: in payments each month toward your principal.
This payment velocity means you'll end up paying your entire home off in years, which is years faster than your current mortgage schedule.
Taking the next steps
9. Go to FirstLienHELOC.com/book
After you've signed up on FirstLienHELOC.com through our calculator system, you'll want to go to the booking page to get connected to a Firs Lien HELOC consultant. You'll go through your financials with this consultant to evaluate whether or not this is a good fit to you. Then, they will guide you to work with a qualified lender to prepare your financials for a loan applicaations.
10. Prepare Your Documents
Prepare your financial docs, and store them in a centralize location.
Thses documents generally are:
- Identification like Driver's License, Passport, or Social Security Card.
- Income documents, like recent pay stubs, W2, or your other income proof.
- Tax Documents, including your last 2 years of tax return.
- Rental or Mortgage docs, including lease agreements, HOI, or Mortgage Statements.
11. Submit Loan Appliation
Submit an official loan application with your match lender. They will work with you to get everything submitted, including your docs.
12. Close
After going through underwriting, close on your loan with the bank. Wheter buying a new home, or refinancing your existing, after closing, your mortgage will be paid off and your HELOC will be opened and active..
13. Update Direct Deposit / Income
Once you've closed, you'll want to update your direct deposit or where your deposit / income routes to to automatically deposit into the First Lien HELOC checking account. Remember, wiwth the sweep account feature of the HELOC, this will automatically apply all deposits to your principal balance. Don't worry – you can always use your equity to pay any bills.
14. Update Expenses
Whether you use a credit card or ACH to pay your bills, you can pay all of your bills out of your HELOC account. With the sweep feature, any debit from the account will automatically be pulled from your home's equity.
15. Track Paydown Results
Overtime, track your paydown results and velocity. If your sticking to the strategy and the budget, you'll see how much faster you are building in your home vs. your traditional mortgage. Be sure to share your results in the FirstLienHELOC.com forums! We love to see how you are using this technique to acheive financial success.
Potential Savings
You could Save
$ 200,000
on the total cost of your home
How Fast You'll Pay Off Your Home
14 Years
By switching to a First Lien HELOC and applying the Maximized Cashflow Strategy,
you would pay off your home years faster.
First Lien HELOC
| Total Cost | $ 0.00 |
| Paid in Interest | $ 0.00 |
| Actual Cost of Fund | $ 0.00 |
Mortgage
| Total Cost | $ 0.00 |
| Paid in Interest | $ 0.00 |
| Actual Cost of Fund | $ 0.00 |
Mortgage
Total Loan Cost
$ 200,000
Principal + Interest Paid
Total Interest Paid
$ 200,000
The total you paid to borrow your principal balance.
Monthly Payment
| $ 3,616.82 |
Timeline
| Years to Payoff | 30 |
| Total Payment | 30 |
Interest Rate
| Interest Rate | 30 |
| Actual Cost of Fund | 30 |
Mortgage Loan Information
Payment Schedule
| # | Pmt Date | Beginning Balance | Interest Payment | Toward Principal | Ending Balance | Cumulative Interest | Equity Gained |
|---|
First Lien HELOC
Total Loan Cost
$200,000
Principal + Interest Paid
Total Interest Paid
$14
The total you paid to borrow your principal balance.
Monthly Payment
First Month's Interest Only Payment
$ 3,616.82
Average Interest Only Payment
$ 1,595.17
Maximized Cash Flow Strategy
Average Monthly Household Payment
$ 8,500.00
Years to Payoff
8.83
Interest Rate
Interest Rate
$ 5.50
Actual Cost of Fund
26.54
First Lien Heloc Payment Loan Information
Payment Schedule
| # | Pmt Date | Interest | Beginning Balance | Minimum monthly payment (interest only) | Principal Reduction | Ending Balance | Total Interest | Total Equity Gained |
|---|
Side by side Comparison
 Current Mortgage |
First Lien HELOC |
|
|---|---|---|
| MORTGAGE TERMS | HELOC TERMS | |
| Current Principal Balance | ||
| Annual Interest Rate | ||
| Comparative Interest Rate | ||
| ESCROW INFORMATION | ||
| Monthly Homeowners Insurance | 0.00 | |
| Monthly Property Taxes | 0.00 | |
| Annual Total | 0.00 | |
| PAYMENT INFORMATION | ||
| Average Monthly Payment | ||
| Monthly Escrow Payment | Total | |
| LOAN PERFORMANCE | ||
| Years to pay off | ||
| Total Loan Cost | ||
| Total Interest Paid | ||
|
Cost of Funds (Percent paid of Initial Balance in Interest) |
||
Side by side Comparison
| Maximized Cashflow Strategy |
|
|---|---|
| HELOC TERMS | |
| Current Principal Balance | |
| Annual Interest Rate | |
| Comparative Interest Rate | |
| ESCROW INFORMATION | |
| Monthly Homeowners Insurance | |
| Monthly Property Taxes | |
| Annual Total | |
| PAYMENT INFORMATION | |
| Average Monthly Payment | |
| Monthly Escrow Payment | |
| Total | |
| LOAN PERFORMANCE | |
| Years to pay off | |
| Total Loan Cost | |
| Total Interest Paid | |
|
Cost of Funds (Percent paid of Initial Balance in Interest) |
|
Why we custom built a 1st Lien HELOC Calculator
We searched far and wide and could not find a good calculator that sufficiently showed how this revolutionary financial strategy works. We felt that a great calculator would include an outputted payment schedule, and could allow one to directly compare a mortgage vs. a 1st Lien HELOC.
We felt like this movement and the benefits of the First Lien HELOC were so strong that we needed to pull together a great calculator that can directly showcase the benefits, and help people understand this financial strategy, month by month, and the total costs involved with financing their home… not just on their disclosure date.
Common "Myths" and Logical Barriers To Understanding This Properly
We get it. When you hear someone say “You can pay off your home in 5-7 years without earning more or spending less”… well, it sounds a bit like a scam doesn’t it? A “too good to be true” scenario, we think that modern finance strategy requires a healthy dose of skepticism. But in this case, when using a Velocity Banking (similar to Velocity Banking Concepts), the math actually shows you really can pay off your home in 5-7 years without earning more of spending less.
So what’s the secret?
Using a 1st Lien HELOC in combination with the Velocity Banking (essentially, all income and expenditures used from one sweep account) HACKS the way that interest is calculated and accumulate for you to pay on top of your debt.
A few key points that are required to properly understand this:
- Why Interest Rate (APR) at a higher rate can accumulate less interest than a lower interest (and what circumstances this applies to)
- Why Loan To Value (LTV) and Term (loan length) are more important
- What Cashflow Is, and how it can be redirected for better financial growth
- What Velocity Banking (as a concept) is and how it's principles of rapid principal balance pay down result in less interest cost accumulated
In a nusthell; shorter loan time.
You see, to calculate interest, an annual interest rate has to multiplied by the number of billing periods to calculate a total cost. It turns out, that a lower interest rate on a loan over 30 years actually costs a lot more than a higher interest rate loan at 5 – 10 years.
Hypothetically you could, however, a mortgage is a one-way loan product. You can only pay into it, and therefor, you have to keep separate bank accounts to maintain a personal liquidity to cover life expenses and living costs. This means that at any given time, you are holding money that is losing its value through inflation, but instead could be applied to and reducing your debt’s principal balance.
A HELOC is a much better product for this use case because your 1st Lien HELOC is an all in one checking, mobile banking, home loan, and other debt loan. Because it is a line of credit based on the equity of your home (generally at an 80% or 90% LTV), you maintain maximum flexibility and function of your personal income and personal profit.
The current federal interest rate (and the rate that banks generally tie to to determine their loan products interest rates) is low, and it’s important to understand that this can adjust upward, similar to a variable interest rate.
Because the American consumer is so heavily marketed and sold on the interest rate of the loan, no one ever focuses on the math of the term of the loan. When you crunch the numbers, most financially responsible households still out perform using a 1st Lien HELOC + Maximized Cashflow Strategy than they do a low-interest rate 30 year conventional or FHA mortgage.
Consumers have been “Trained” by the banks to look at APR as the primary factor for their pricing structure for their home loan, but this is only a secondary metric.
The most important metric to understand for your loan is what is called “Actual Cost of Funds” (ACF) and is the relationship between the amount you have financed, and the total amount you pay in interest for that financing.
With a standard 30 year conventional mortgage at a 3% APR, you will still generally pay between 40-120% of the total price of the principal balance in interest to the bank.
So for example:
Say you finance $300,000 at 3% for a 30 year rate.
Your actual cost of funds would be: $155,332.36 of interest paid.
$155,332.36 / $300,000 = 51% actual cost of funds (also known as Effective Interest Rate).
So while 3% APR is used to make you think you are getting a GREAT DEAL on your home loan, when you actually do the math… not so much of a great deal is it?
Empowering American Homeowners with Better Financial Strategies
Interested in a 1st Lien HELOC for yourself?
Get Matched With A Qualified Lender.
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Common Use Cases
*This statement is not a guarantee of results, savings, or any financial circumstances. We strive to accurately represent these concepts and the educational value they provide. However, there is no guarantee that you will save any money using the techniques and ideas in these materials. When we present savings, interest, and other related benefits on our website and our other channels, we are showcasing both real and simulated results, which may not apply to you. Your results will be determined by a number of factors over which we have no control, such as your financial condition, experiences, skills, level of efforts, education, and changes within the market. By continuing to use our site and access our content, you agree that we are not responsible for any decision you may make regarding any information presented or as a result of purchasing and of our products or services.
**The figures and numbers presented in the First Lien HELOC calculator are simulations dependent upon your reported financial circumstances and the data that you enter. These figures are limited estimations and we at First Lien HELOC LLC can not guarantee future results. By using our calculator, you agree that we are not responsible for any decision you may make regarding any information presented or as a result of purchasing and or using our products or services.
***We are not a lender, bank or financial institution and do not make loans or credit decisions in connection with loans or pre-qualify any consumer for a loan. When you submit a request for financing or information using our services, we may submit your information to one or more third party lenders or other brokers, aggregators or referral services, and other reputable third parties in connection with fulfilling your loan request or other request for insurance, marketing, vehicle sales or leasing, or other products and services, and your information may be shared in accordance with this our Terms of Service and Privacy Policy.
Should you apply for a First Lien HELOC with any bank or lending institution, all lending decisions are made by the lender and we do not guarantee approval or that any loan terms or rates provided or offered to you will be the best terms or the lowest rates available in the market. We do not guarantee that submitting your information through the sites or services will result in you being matched with a lender for further processing. We do not guarantee that you will be offered home financing related to your loan request, nor do we guarantee that any home financing or loan product you are offered by a lender will include rates or terms satisfactory to you. Any offerings made to you will be done so by the lender and not by us. Services listed on the site do not represent all financing or credit options, products or services available in the market. Not all consumers may be approved and individual loans terms and rates may vary based on the lender’s credit determinations, amount financed and other factors. The lender may perform a credit check or other credit evaluation in making their lending decisions. Nothing contained on our site constitutes an offer or promise for a loan commitment or interest rate lock-in agreement. There is no guarantee that a loan will be given to any user using these services.
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