Would a sweep pay off the mortgage sooner?
A line that sweeps your pay against its balance, against extra principal on your fixed loan.
How this tool works
With a sweep, your pay lands on a home equity line and lowers its balance until you spend it, so interest is charged on a lower daily balance. The line can replace your mortgage as a first lien, or sit behind it as a second lien that sends chunks of money to the mortgage. The tool always shows three lines: the sweep, your fixed loan with the same money left over each month paid as extra principal, and your fixed loan alone. Most of the benefit comes from the money left over each month, not from the sweep. With nothing left over, a sweep does not help.
The line’s rate is usually variable and is held at the example here; a higher rate than your mortgage’s can cost more than it saves. See every equity tool together in the Equity Lab.
See it with your own numbers
It starts with a short conversation. Daniel builds your Mortgage Plan from it, then sends it right before a second call, where you go through it together.