Mortgage Cycling

[Eugine]

Mortgage cycling is a mortgage repayment strategy that, if followed, will reduce the length of the home loan and save significant amounts of money through a reduction in interest payments. While the mortgage cycling strategy is sound, some have advocated using home equity lines of credit to finance the strategy. That may or may not be risky, depending on your situation. To simplify mortgage cycling, assume that you have a mortgage payment of $1,000 US Dollars (USD) per month and that this mortgage is relatively new. It will be front-loaded with interest. Let's say the interest versus principle payment is $900 USD to $100 USD. That means only $100 USD each month is going to the principle at first.