How to Use a First Lien HELOC to Save Money

Updated as of January 26, 2024 |

Saving Money & Simplying Your Finances

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.

How Does a First Lien HELOC Save You Money?

First Lien HELOCs operate similar to checking accounts.  By routing your income to your account, the integrated sweep account will automatically apply any account balance to the principal balance each night. This can drastically reduce the term of your loan, and ultimately, the amount of interest you pay.

When using the Velocity Banking, 1st Lien HELOCs can save you thousands of dollars by:

  • Replacing your existing mortgage
  • Reducing total paid interest
  • Consolidating Debt
  • Remove the need for other financing (and the fees that come with it!)

A First Lien HELOC is one of the best ways to access your home’s equity and maintain financial peace. Some homeowners consider cash-out refinancing to sell to access their capital, however a First Lien HELOC can help you access this cash without giving up your home or paying additional closing costs for another home loan.

A First Lien HELOC also allows you to pay for expenses you wouldn’t normally be able to afford, and therefor, keep you out of troublesome loan terms. From replacing HVAC units to car or roof repairs, you may draw any amount of credit from your First Lien HELOC as long as you have the available equity to do so.

Your credit limit depends on a variety of eligibility factors. However, First Line HELOCs can provide up to 90% of your existing equity in credit.

A financial swiss army knife

One of the best parts of 1st Lien HELOCs are the fact that they cover all necessary finance and financing needs for most Americans. The flexibility of this financial tool allows you to pay for what you need, when you need it, without adding additional fees. You can simplify your accounts, and rapidly pay down your debt using the Velocity Banking, saving you big on total interest payments. With mobile banking, overdraft protection, and online bill pay built it, your 1st Lien HELOC could be the simple solution to many of life’s financial challenges.

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.