When Do I Pay Off A Home Equity Line Of Credit?
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- เผยแพร่เมื่อ 24 ก.พ. 2019
- Nathan has a HELOC (Home Equity Line of Credit) and asks Dave where in the Baby Steps he should pay that off.
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Great video Dave! Keep it up
I remember leading up to the last housing bust, every banker's first question to the customer was "Have you opened your HELOC yet?" It was always phrased in a way that made the customer feel as though they were missing out. Those equity lines were soon maxed out and you know what happened next.
David N. Waldrop, CFP® They still are maxed out. It’s amazing how quickly people utilized their HELOC even after the cash 🤨
Dave says $194 but math says $164 and the caller agreed with Dave's 194 number. I'm baffled.
Sometimes callers are too nervous to correct DR.
This is new.... Answer is yes
190K house???
So wait, his HELOC is maxing out and he owes 84k on his house?
Can chat help me out with a question?
Im 25, my works retirement/pension provides me ~12.5% when i put in 4%. I work for a state government so my retirement/pension is not like everyone elses retirement. I have ~200k worth student debt and 48k salary right now (lots of room for promotions at work once training is done, and continued raises each year). Would this be an exception to keep in my 4%, or should i be following the plan and put a hold on retirement funding?
ZR : Typically Dave says STOP contributing to Retirement until debt free.
Check out previous vids
@@sunset6010 I bought total money makeover, and he does say there are rare exceptions to the rule. Idk if mine is, either based on my numbers, or based on the fact that my retirement isn't a 100% match, its actually a >250% match.
Personally I would max out my contributions. The amount of money matched plus the compound interest would be a huge loss.
Nice match; are you in Illinois? Given the loan amount, your current income, and the generous match, I think you'd meet his qualification of an "extremely deep hole" as Tammy does in the example on page 120. Good luck and congratulations on the career!
@@MrsThollo I live in VA. The state really takes care of us, just gotta pay my dues first lol. I believe itll all work out in the end. I plan to be on board with the plan, this was my only real question about it. Thank you!
I need help from the chat. I called the show numerous times with no luck. I have a rental property paid off. I live in a different house with mortgage. I have $120,000 equity. the question is should I sell my paid off property which is worth about $70,000 or take home equity line of credit to renovate the garage and make it a livable space and rent it out. My net income from the rental property is $600 a month and I know I can get $1,200 a month from the new construction I'm planning to do. The project will cost me around $20,000 and put the rest towards the principal.
120k in equity, how much is left to pay on the note n how many years? Ur making 7,200 a year net from the rental what’s the gross? I personally think u know what u want to do that’s y ur asking online just to have a audience of ppl to agree with ur idea for approval. Trust ur gut and do what it says. If were me I’d take a 20k equity loan u should have it paid off in 19 months max from your rental income on separate property and then 1200 a month on new improvement. Then ur sitting on profit from two rentals..
ray chic If I’m understanding correctly, one of the options is to use the equity line of credit to do a renovation?
Cash is king save the 20k and pay cash
@@matmcginty4010 my gross from the rental is 9600 a year. But HOA is 200 a month. This property in Michigan and I live in California. I owe 397000 on my home, the value is 520000. I was searching right now and found out a personal loan with low interest rate for three years NO penalties on paying off anytime.
@@jenniferwitherspoon4261 yes. or is there better options?
Debt is I don't believe !!!
House for 190k?
Damm that’s a dreams dream in Southern California
4 bedroom 2 bath in SoCal around 700k
Daniel Bustos that's about what mine is worth. 5 bedroom 3 full bath. Depends on your area where you live. In SoCal I'd most likely make 200 k as well, not 70.
3 bedroom 2 bath in rural central Illinois is around $100k LOL I don't understand how people can afford to live in Cali
Wait. He owes a total of $164,000 on the house. He said the house is worth $190,000. That's not upside down.
Owes $194,000
leaderoftheworldputin He said Lexington KY! We bought our house in Tennessee in foreclosure for $35k!
@@Therealclayton He said he owes $84,000. I'm not sure where everyone else is hearing 194?
@@Therealclayton, Dave says $194 but math says $164 and the caller agreed with Dave's 194 number. I'm baffled.
@leaderoftheworldputin LOL $190,000 would get you a house over 2,000 square feet where I live. I got mine in 2005 for $65k. in 2012 it re-appraised at $86k. cost of living is much cheaper in rural areas. the only problem are rural areas don't have as many job opportunities and owning a car is an absolute necessity