Can you use a HELOC to pay off a mortgage?

If you’ve built equity in your home but still have a mortgage balance to pay off, you may want to consider a home equity line of credit (HELOC) — basically a loan to pay off a loan. Depending on the terms and fees, a HELOC can reduce a homeowner’s monthly payments and the overall interest paid on the loan. With a home equity line of credit, you pay interest only on the amount of money you borrow, similar to a credit card. Another benefit of a HELOC is that you pay low or no closing costs, compared to a conventional mortgage or a home refinance, which can have costly closing fees.