The concept behind H.E.A.P.™ is really very simple and is based on the following principles:
Having a monthly balance in a checking account is NOT a good idea (money in a checking account earns you zero or very little interest and that interest is taxed annually).
- Using All of Your Money All of the Time
- It is always best to use all available dollars ALL THE TIME to pay down the debt on your home.
- No Change in Your Spending
A good home equity acceleration plan will NOT require you to alter your spending habits.
Understanding the following will help you understand the basics of H.E.A.P.™
Your bank or mortgage lender charges you interest on a daily basis (many people think of mortgages as a monthly expense when it is really a daily expense).