cooprider14
I have to say that I have not done the proof and right now but this is not as uncommon as people are making it out to be. It is used in Australia and Europe.

I wouldn’t be so skeptical of different techniques. There are a lot of Diesel cars in Europe that have not made their way to the States and they are far more efficient and practical. If they show up and Youtube that means they are a scam???

You guys are focusing on the wrong side of this pay down deal. You are only looking at the rate. To equate a monthly payment it is rate times the balance. If my payment goes in first and immediately reduces my outstanding principal balance at the beginining of the month from 100000 to 97000 on the First Day of the month, and then as the month goes on my balance goes from 0 to 3000 at the end of the month on the heloc so that my daily interest can actually go down on then net. It is complicated and requires timing your payment and manging your cash flow. Again I am not endorsing the product but I think I get how it works.

Quick math 4% interest on 100000K loan is $4000. Time the payments so that you are putting 100% of payment immediately toward balance so that you are systematically lowering the average outstanding balance throughout the year to 90000 and you can have a higher rate of %4.44 and still only pay 4000 in interest.

I think this is the concept. There more to it than some people of you are dismissing. But it requires more effort than it is worth for the average Joe.