There are fixed, hybrid and variable rate HELOCs. Variable interest rates mean the percentage will rise or fall depending on the monetary policy of the Federal Reserve. With our strategy, one's HELOC will become interest-rate immune - essentially paying off the loan faster than the interest can increase the outstanding balance.
A 30-year mortgage at a 5% interest rate has one pay $193K for every $100K borrowed. A HELOC at a 10% interest rate, only has one paying $130K for every $100K borrowed when the loan is repaid in 5 years like we show in the program. A HELOC with an interest rate 2X higher than a mortgage saves $63K for every $100K borrowed!
NOTE: Only if one is not cashflow positive could an increase in interest rates affect the HELOC negatively. In short, we'd much rather have a 10% HELOC over a 5% mortgage!