I am still trying to figure out where you think you get a gain here. The only thing I can think of is something akin to kite'ing checks. That the $50,000 will not be attributed to the HELOC until the following month, but will take effect on the mortgage at the immediate month. The problem is that as of recent banking laws, transfers take effect in 3 to 7 business days depending whether it is in-state or out of state (check and funds clearing laws). This means that the fund transfers (credit and drawdown on HELOC) will be attributed virtually simultaneously.

I've been silent trying to follow this thread because I find it interesting.

Dumb question, and mainly a reflection of my own pea-sized brain at this point.

 

But does this apparent strategy supposedly work because

1) your regular mortgage is compounded monthly

2) your heloc would be compounded daily..Coupled with a direct deposit of paychecks say at bi-weekly intervals, the running balance on the heloc would be lower such that despite the higher interest rate and higher frequency of compounding, the lower average balance offsets the higher rate and higher frequency of compounding……

 

If that's the idea, I have to think about it. It makes an interesting problem… Still trying to figure out how it works in theory.

 Side note: why don't 35 of us pitch in $100 each and buy 1 copy of the program. Just kidding 🙂