Ideal Features Included in an All-In-One 1st Lien HELOC

Updated as of January 26, 2024 |

What is an All-In-One First Lien HELOC?

You may be asking yourself, what exactly is a First Lien HELOC?  HELOC stand for “home equity line of credit” which refers to a revolving line of credit secured against the equity in your real estate asset. You can borrow money and pay back as often as you may wish.  The “First Lien” dictates what order the mortgage or deed of trust is on your home’s title.  As it sounds, the First Line would be a First Mortgage or a First Deed of Trust in first, or top, position.  Should there ever be a default, the order of the mortgages or lien filed on your title dictates who gets paid first.

Managing your personal finances, including your home loan, should be one less headache so you can focus on the other areas of your life.

Having the Peace of Mind that you can manage your personal finances at your fingertips is even more critical, given the uncertainty of today’s economic climate.

Many homeowners rely on savings accounts to help them through troubling times.  In fact, 42 percent of American homeowners said they would dip into their savings to pay for a $1,000 emergency.

However, leveraging your home equity can be a better alternative.  With a First Lien HELOC, you have access to a more reliable financial resource.  Here’s how a First Lien HELOC works and how you can use it to save money.

Integrated Sweep Account

One of the most important features of any “all in one” type 1st Lien HELOC will be the inclusion of an integrated sweep account. What is this? 

An integrated sweep account is an account that is directly linked with your checking account, and that automatically withdraws or deposits any needed balance between the principal on your HELOC and your checking account. What this means is that, for any night that you have a balance in your checking account, the sweep account will take that balance and apply it to your principal, therefor paying down your loan amount by whatever was left in your account. On days where you spend from your checking account any amount greater than the balance of the account, the sweep account will pull funds from your HELOC (adding to your principal balance) to cover the charges. 

Some banks require fees with a sweep account, or will charge for certain transactions. If using the “Velocity Banking”, then you’ll want an integrated Sweep Account that is free.

Debit Card

Debit Cards are a crucial aspect to paying for life’s largest and smallest expenses. Any 1st Lien HELOC must include a debit card so that you can use your HELOC just as you would your own checking account.

From paying for recurring bills to one of purchases at the local grocer, a debit card is a “no brainer” necessity when it comes to any 1st Lien HELOC.

Mobile Banking

Mobile banking is another “no brainer” necessity for any modern consumer. Easy, immediate, and fully accurate access to your accounts and statements mean that you’re never left in the dark as to how your money and your cashflow is working for you.

The right 1st Lien HELOC will include mobile banking, allowing you to easily deposit checks, view your statements, see account activity, and request support from the bank. 

Overdraft Protection

As long as you have not reached your credit limit with your First Lien HELOC, your sweep feature will kick in and you will not be hit with overdraft fees, return check fees, etc. If you’re line is maxed out, then you will be hit with overdraft fees.

No Escrow

One the best benefits to having a 1st Lien HELOC is that there is no required escrow for things like Taxes, fees, etc. Because your 1st Lien HELOC allows for money to go in or out of the account at will, an escrow account is not required to set aside your owe fees. 

When your taxes are due, you just pay them from your account. 

Achieve Financial Freedom

Sign up on to get connected with a licensed lender who can deliver an all-in-one 1st Lien HELOC. They’ll walk you through the application process and help outline your budget, your numbers, and exactly how much you can save by replacing your mortgage.