I currently have a $560k mortgage and took out an additional $105k HELOC piggy back loan to make up the 20% needed for the Jumbo loan last year. I've been saving for the past year and a half and now have $100k in savings. Should I be paying down the HELOC early or investing/saving the money? the HELOC is variable with a current 5.95 APR

  • 2
    I'm closing as a duplicate, although I disagree with the accepted answer. I had given basically the same answer as the highest-voted answer but deleted it to close as a duplicate. Pay off the HELOC as soon as you can, saving a little for an emergency fund if you wish.
    – D Stanley
    Commented Sep 28, 2017 at 22:22
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    I agree with D Stanley. I say pay off the HELOC and use it as your emergency fund until you have enough in cash. There's a small chance the HELOC could be taken away, but with good credit and good income I wouldn't be concerned about that.
    – TTT
    Commented Sep 29, 2017 at 1:17
  • This question was asked on the heels of two devastating hurricanes, which home owners discovered they have high deductibles, around 2% of home value. For the OP, that would be at least 10K. Many are struggling as they are over leveraged. Pay off the HELOC and get an emergency fund.
    – Pete B.
    Commented Sep 29, 2017 at 11:33
  • another agreement. Get the HELOC out of your life ASAP. Debt is risk, and debt with a variable APR is playing with fire.
    – rocketman
    Commented Sep 29, 2017 at 20:02


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