Steve Hill, The Mortgage Scientist

10/23/2026

10/21/2026

When a first lien HELOC costs more than a 30-year fixed ⚠️

It comes down to your average daily balance, which is just how much money sits in your account, on average.

Keep a lot in there over time and you pay less interest. But “a lot” is more than most people think. With a rate about 1% higher, you’d need more than roughly 10 to 15% of your loan balance sitting there, on average, to actually save money.

If your balance is lower, like most of us, it can cost more than a 30-year fixed.

💬 Comment HELOC and I’ll send you a quick breakdown.

Educational only. Rough illustration based on a ~1% rate gap, not a rate quote or financial advice. Your numbers will vary. Rates and terms vary by lender.

10/20/2026

You’ve seen the videos: “I paid off my $400k mortgage in 4 years with a HELOC.” That $400k came from somewhere. The bank gave you $400k, and you gave the bank back $400k plus interest. That’s why you don’t have a loan anymore. It’s not magic.
A first lien HELOC can be a great tool for the right person.

Here’s the honest breakdown:
✅ What’s cool
* When you use it like a checking account, with your paycheck going into it, you pay less interest on your mortgage.

* If you’re a business owner with a ton of money in the bank, you can pay less interest even though your rate is higher.

❌ What’s not cool
* The rate is usually about 1% higher than a 30-year fixed. If you spend most of your paycheck each month, there’s no pile of cash saving you interest, so it just costs more.’’

* Your line can get frozen in an economic downturn.

* When your draw period ends, your payment goes up.

🚩 The big one
Have you ever maxed out a credit card? It doesn’t feel great, and it’s really easy to do. A first lien HELOC can turn your home into a credit card. I’ve seen people max out HELOCs a ton. If you have trouble with spending, this is the risk to take seriously.

So who is it for? Mostly people with a large cash cushion, steady surplus income, and the discipline not to treat the available credit as spending money. If that’s not you, a fixed-rate mortgage is often the better deal, and there’s nothing wrong with that.

📤 Send it to someone who’s thinking about a first lien HELOC.

Educational only. Not a rate quote, financial advice, or a commitment to lend. Rates, terms, and availability vary by lender and may change.

10/20/2026

First lien HELOC: what’s cool, and what’s not.

You’ve seen the videos: “I paid off my $400k mortgage in 4 years with a HELOC.” That $400k came from somewhere. The bank gave you $400k, and you gave the bank back $400k plus interest. That’s why you don’t have a loan anymore. It’s not magic.
A first lien HELOC can be a great tool for the right person.

Here’s the honest breakdown:
✅ What’s cool
* When you use it like a checking account, with your paycheck going into it, you pay less interest on your mortgage.

* If you’re a business owner with a ton of money in the bank, you can pay less interest even though your rate is higher.

❌ What’s not cool
* The rate is usually about 1% higher than a 30-year fixed. If you spend most of your paycheck each month, there’s no pile of cash saving you interest, so it just costs more.’’

* Your line can get frozen in an economic downturn.

* When your draw period ends, your payment goes up.

🚩 The big one
Have you ever maxed out a credit card? It doesn’t feel great, and it’s really easy to do. A first lien HELOC can turn your home into a credit card. I’ve seen people max out HELOCs a ton. If you have trouble with spending, this is the risk to take seriously.

So who is it for? Mostly people with a large cash cushion, steady surplus income, and the discipline not to treat the available credit as spending money. If that’s not you, a fixed-rate mortgage is often the better deal, and there’s nothing wrong with that.

📤 Send it to someone who’s thinking about a first lien HELOC.

📌 Save this so you can come back to it before you decide.

Educational only. Not a rate quote, financial advice, or a commitment to lend. Rates, terms, and availability vary by lender and may change.

10/14/2026

Buy Before You Sell Program

I just got a flyer on this program yesterday from one of our lender partners, it’s a really cool program where you can omit your entire current mortgage payment by writing a letter stating you intend to sell in the next 90 days.

You do need 20% equity and additional reserves, but it’s the first time I’ve seen something like this and I do hope we’ll see more things like this in the future.