HELOC 1st position mortage

Was doing some research and it actually makes sense... but was looking for some input from others too...

1. Convert current mortgage to HELOC
2. Use your HELOC as your primary checking/savings account.
3. Deposit ALL income into HELOC. This reduces daily balance, and puts "savings" towards balance as well, further reducing daily average balance.
3A. Savings account apx 0.03% interest HELOC/MORTGAGE 4%. This is a much better use of the money from an investment position.
4. Pay bills from HELOC, again using the HELOC as the checking account.
5. Why NOT put all extra income towards principle with traditional mortgage? Because I might need that money and I can't get it back once I send it in.

It seems this strategy would pay off the loan in about 8 years. At the end of 8 years, you have no savings, but still have 2 years left on a 10 year HELOC should an "emergency" expense show up, while rebuilding savings. However, this pays off the 30 year mortgage 22 years early, allowing for much time to "make up" the savings differential.

Thoughts?

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HELOC 1st position mortage