Mortgage accelerator loans are common in other countries. It uses home equity borrowing and the borrower’s paycheck to shorten the time until a mortgage is paid off, saving tens of thousands in interest expense.

The loan program is based on an approach common in Australia and the United Kingdom, where borrowers deposit their paychecks into an account that, every month, applies every unspent dime against the mortgage loan balance. In Australia, more than one-third of homeowners use a mortgage accelerator program. In the U.K., it’s about 25 percent.

The premise is that borrowers finance a new property or refinance existing property using a home equity line of credit, or HELOC. Borrowers then begin directly depositing their entire paychecks into the HELOC. Monthly expenses, other than mortgage payments, are funded by draws against the line of credit, whether that is by using bill pay, check writing, ATM withdrawals or a credit card tied to the line of credit.

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