A first-position-lien HELOC is a line of credit and mortgage rolled into one. It often works as a new mortgage or by replacing your existing mortgage, taking over as first lien or first mortgage. But unlike a traditional mortgage, it also works like a checking account, similar to a home equity loan. Borrowers are able to apply direct deposits to the loan principal — reducing mortgage interest and home loan term. You can also withdraw cash for the 30-year loan duration without having to refinance. This kind of financing can potentially pay off your 30-yr mortgage in 5 to 7 years. This is also a powerful way of funding your Real Estate Investments as your equity is always available without need for refinancing.