How can a HELOC work as a money merge account along with a first mortgage to impact the average daily balance to reduce the interest paid on the first mortgage?
We have seen "money merge" accounts touted on the internet. Whether such an arrangement could reduce the amount of overall interest you would pay on your HELOC and first mortgage would greatly depend on the relative interest rates of the two loans, the balances of each, any contractual provision in the mortgage note concerning the application of excess payments, and a lot of other variables.
We recommend you take your question and copies of all documents involved to a licensed or certified financial planner who would be in a position to "crunch the numbers" and interpret the contractual language for you.
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We have seen "money merge" accounts touted on the internet. Whether such an arrangement could reduce the amount of overall interest you would pay on your HELOC and first mortgage would greatly depend on the relative interest rates of the two loans, the balances of each, any contractual provision in the mortgage note concerning the application of excess payments, and a lot of other variables.
We recommend you take your question and copies of all documents involved to a licensed or certified financial planner who would be in a position to "crunch the numbers" and interpret the contractual language for you.
