I was surprised to find two banks offering very low HELOC introductory offers. One is 0.99% for the first 6 months.
My mortgage is at 4.75%. So I'm thinking it would be worth to take out a HELOC and put in say a chunk of $18,000 into the mortgage from the HELOC and then pay off the HELOC at $3k every month for 6 months to pay off the HELOC in full.
After running the Mortgage payoff calculator, it shows that adding a $18k lump sum now would save me $40k in interest and 10 years from the 30year mortgage. (Total mortgage is just under $100k).
Am I missing something?
The alternative is to save $3k a month into VTSAX/Cash/CD/s.
My retirement is low at about $190k, so that was going to be my focus this year, but the super low HELOC offer seems to good to pass up.