Mortgage Calculator

Pay Off Your Mortgage Fast: Expert Reacts to Graham Stephan

Paying Off Your Mortgage Fast… Today, I’m going to react to Graham Stephan and why he is incorrect on our strategy of using a HELOC to Pay off Your Mortgage. This strategy has many names like Velocity Banking, Mortgage Acceleration, Replace Your Mortgage, Debt Acceleration, the Pill Method, Sweep Strategy… But the REAL name to this strategy is Accelerated Banking. We agree with 99.999% of what Graham says but this is that 0.001% that we disagree with. I’ll explain why Graham is wrong and why he misrepresented the strategy as well as why you SHOULD use a HELOC to pay off your mortgage.

Graham’s Original Video:

Graham Stephan’s YouTube Channel:
(Go subscribe to his channel as well!)

Our Original Video: How to Pay off Your Mortgage in 5-7 Years (on Average):

Paying Extra Vs. Using a HELOC:

Why NEVER to Refinance Your Mortgage:

Our HELOC Calculator:

Results Disclaimer: The results of using a HELOC to pay down the mortgage shown on this video are actual results from actual clients of the Kwak Brothers. However, the results are not guaranteed and such results are atypical. Payoff results or any outcome solely depend on the user’s own past experience, motivation level, work ethics, and effort.

Okay, so what is a HELOC in the first place? A HELOC is an acronym that stands for Home Equity Line of Credit. It essentially works like a credit card but is backed by the equity of your house. It’s technically a form of a mortgage but it’s a revolving credit line. A HELOC is often used to renovate homes, invest in other projects, but it can also be used to pay off your mortgage.

Graham Stephan’s video is actually old and it’s been out for a year. I was a big fan of Graham, until this video… (Just kidding!) But in all seriousness, here are the points that he’s wrong about using a HELOC to pay off your mortgage. Keep in mind, Graham is ONLY referring to 2nd lien position HELOCs and it appears that he doesn’t know about 1st lien position HELOC and the fact that it exists.

Here are some of the Highlights of this video:

1. Higher Interest Rate
Well, with a 2nd lien HELOC, you will most likely find the rates to be higher than your typical fixed 30-year mortgage. However, even with this fact, the strategy proves that a higher interest rate on the HELOC has little to no bearing on the effect of the pay off period. That’s because we’re focused on paying off the principal balance as fast as we can. Also, the balance we’re carrying on the 2nd lien HELOC is very low at a given time, therefore – the net interest amount is low too. But we haven’t even discussed the idea of a 1st lien HELOC which has comparable interest rates to the traditional 30 year mortgage.

2. Variable Interest Rate
Graham refers to HELOCs having a variable interest rate. What’s interesting is that most of the HELOC account that we refer to use what’s called a LIBOR as an index. (soon to be replaced) The LIBOR actually went down this month. Plus, you can lock the rate on certain HELOCs so therefore, this is also debunked.

3. HELOC Tax Write-Off
It’s true that you can’t write off the interest on the 2nd lien position HELOC but you CAN on a 1st lien position.

4. I’m still a fan of Graham…

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—DISCLAIMER— The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.



  1. So what do you think?? Controversial, eh?

  2. I'm a subscriber of both of you and its awesome to see counter arguments. I understand that you pay your monthly bills with a credit card and then pay it off by the end of the month, but what about your mortgage?

  3. I’m enjoying the counter points. Definitely not one size fits all.

    I’ve never met someone with a paid off home who told me, ‘I wish I had a mortgage payment every month!!!’

  4. I have used this strategy since October 2019 and have paid $45,000 towards my mortgage. Since then I have only paid $326 in interest from using my HELOC. That isn’t even half of what I pay in interest monthly making my regular mortgage payment. I have saved $4500 dollars in interest so far and my house is estimated to be paid off in 3 years if I keep this up. I’m an average person that just happened to land on your channel, watched, listened, was skeptic and fearful, but I tried it and I am forever grateful. It makes complete sense to me and works for my situation. I’ll be using this strategy to get my first investment property and hopefully more when the opportunities present itself. Thank you for the content you guys are awesome. (I like Graham too but not sure if I believe half the crap he says now after seeing this) I know first hand that this strategy works. Keep it up guys thanks a lot.

  5. Nice rebuttal.
    1 year later, but still very relevant in this time of plague.
    If you paid off your house with heloc last year, you have a paid off house,
    if you invested all your extra money on stocks or rentals last year up to now…..
    Hindsight as they say…..

  6. (From what I am hearing) With these HELOC you are getting one loan to pay off another one. You still have a debt to pay off right? I guess if you have very bad interest-rate on your mortgage and you use this to replace it this might be a good option. But if you don’t have that then it’s not making a lot of sense to me to get one. I have a 3-4% rate on a mortgage which I plan to have payed off in 10 year’s. What would a HELOC do for me in that case?

  7. Great Video breaking this down. I remember that video from almost a year ago. This was the one that inspired me to unsubscribe from his channel. I knew he was very wrong and I could no longer trust his advice.

  8. Can you recommend some HELOCs then that have a fixed, low rate?

  9. I love your strategy. It has been working like a charm with us. Thank you.

  10. So your basically most HELOCS cannot payoff your mortgage safely, Unless we go to you and get the Holy Grail HELOC 😏

  11. I used heloc and paid off my house, my heloc came with no fees

  12. Grahm is smarter than you.

  13. I still don't get it LOL. I'm gonna check out your Pay off your mortgage video next and I hope I will learn something new.

  14. Great video! My wife and I used a first lien position HELOC to pay off our house in 2.5 years. We finished paying it off at the end of February. What a great feeling during these crazy times!!! Keep up the good work!

  15. No helocs in Ireland I believe

  16. great video you deserve more views

  17. awesome video you deserve more views

  18. Hello there. U guys do a Great job explaining things in, easy to understand language. Thank u.

  19. Cool! keep Going. also, Let's be friends xD


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