Amazing educational insights. Working on my personal financial habits, and look forward to preparing for the opportunity to qualify for a HELOC and use it to my advantage. Discipline and education is key. HELOC should never be used for personal expenses, wish consumers were advised on its utility.
Thanks for the info. Very easy to understand. I’m retiring in 4 years and was thinking of a HELOC for home improvement and bills. After watching this video I’m gonna pass on this and work harder at paying in cash.
I tried a home equity loan with my mortgage company. I was asking for 35k. They wanted to redo my entire loan to bring the 35k into the total mortgage balance. Then they wanted closing costs of $7600 and a $320 startup fee, and to add insult to injury, they wanted to increase my APR from 2.5% to 8.5%. To hell with them.
Looking to make some home repairs. Over a 3-5yr period. Heloc sounds like a nice option. Make the repairs and pay off the debt asap. Without having to spend my savings all at once.
what are your thoughts on using a HELOC to finance renovations in an historic home to improve energy efficiency (new HVAC, new attic insulation, window inserts, etc.)? I a have a drafty old house with 25 yr old HVAC system, and my utilities are through the roof. I'm estimating needing 50k to do this work and estimate saving $300 a month (gas & electric bills) after energy improvements.
I am against it because the math doesn't add up to me. Now you're looking to spend $50K to save $300 a month. So if you pay $300 back to your $50k, that's almost 14 years. You're going to pay 10% in interest for 14 years? Can't you save cash and pay for the home improvement and not do the entire project all at once?
We did it last year Oct. 37k regret it the rate will got to 8% or more. Introductory rate at first of 4% My idea was to pay it down with market gains of 2023....not enough unfortunately
In other words,like any other credit issuer. They charge you to use your own money. Not knowing anything about this. Based on your explanation of this. One would give INTEREST in their property to another. It’s bad enough that mortgages are what they are. Then to add something like this into the mix. Just spells lien on your property to me. Great vid
My dad wants to take out a HELOC on our home as his brother who just moved to the states (from Mexico) wants to get a home. My uncle doesn’t qualify for a house on his own as he literally just got here less than 3 months ago and although he came to the country with around 25,000 saved, that still isn’t enough to get a home. So my dad was trying to apply for a home for him, but he was only approved for 300,000 but they would need to make a 50 to 70 K down payment, and obviously that’s a lot of money so now they’re considering having my dad get a HELOC in our property. It was bought at 147k, they owe 80k, and now it’s worth 365k. I keep telling him it’s dangerous to get a loan especially a HELOC for his brother, but it seems like he doesn’t care and is going to go forth with it.
Thank you for explaining this.. they seriously don’t explain it to you, I assumed it was similar to just refi to pull your equity but no way I’m doing it just to be charged interest for it
Bank won’t explain like TH-camrs (you) but just quickly send requirement documents to sign; after listening to this, I just sell my house, get the cash and pay none of them fees to the HELOC bank
Yep, I’m review HELOC paperwork right now. I was quoted a 9.5% interest rate. HELOC is for $75K, but I only need $22-$25K. I could actually pay it in cash. But want to be prepared for surprises, in the house I’m inheriting. The amount owed is for back property taxes, during probate. I just want to stretch payments for 1-2 years. But am not interested in making the place picture perfect, with renos. Just want out of my apartment as yearly rent is equal to property taxes.
Thanks for open my eyes on a heloc obviously is a sweet trap bcz is a credit card better I open a regular credit card without put my roof in danger if something happens on the road
@FIREPsyChat i understand, but u don't lose u home overnight using a credit card. If you open a heloc account, that is exactly what happen be a homeless for a few thausand if someone get wrong
I agree with u, right now I have small debts with home Depot & Lowe's, I owe 1,300 in total making monthly payments I'm getting there, didnt wanted touch my home n loans or anything , ( it's risky putting it property n danger)
That's the exact strategy of velocity banking. Pay all expenses out of it, deposit all income in it, use positive cash flow to drive down principle balance and avg daily int.
I may be looking more towards a home equity loan. I over estimated my ability to keep track of debt my interest rate is currently at 2.5 and definitely don't want to refinance the full amount
Its really only worth getting a HELOC if youre doing velocity banking in my eyes. If you can dump your income into it and pay expenses out of it. Its a fantastic strategy.
Hey Joe, getting a HELOC is just treating a symptom of another financial problem. What’s the root cause of the $60k credit card debt and how do you never get back into it? I’ve been there. I had $110k in debt. You can schedule a complimentary coaching session with me by visiting www.firepsychat.com/coaching.
Depends on the cc interest rates. The nice thing is depending on the provider you can pay direct to your principal on the heloc on top of the interest payment. Allowing you to pay the debt off faster. If you can afford to do it this way and then not touch the heloc during the draw period after you have paid it off then your golden.
My problem in getting a heloc is that these Ahole banks want to sell you a huge heloc so they make this gigantic commission. When asking for a 25k heloc they came back to me and said 100k is the minimum but I wouldn't qualify because of my income. Huh? My house is paid off so why would I put it at risk with these scamming pricks!
what are the pros and cons of having to listen to another talking head drone on about HELOC? it is easy...people are overspending with money that does not belong to them at an high rate with usually INTEREST ONLY payments ..... its not rocket science to figure out the dangers of that...get rid of the bad lamp and curtains...clutter is not needed when discussing finance.
Amazing educational insights. Working on my personal financial habits, and look forward to preparing for the opportunity to qualify for a HELOC and use it to my advantage. Discipline and education is key. HELOC should never be used for personal expenses, wish consumers were advised on its utility.
Thanks for the info. Very easy to understand. I’m retiring in 4 years and was thinking of a HELOC for home improvement and bills. After watching this video I’m gonna pass on this and work harder at paying in cash.
No problem! No matter how much I calculate the ROI, a HELOC just doesn't make any sense.
Rates are too high still.Good decision
I agree. Me too!
So you want to get more debt to pay debt and put you home at risk?
My wife keeps insisting we have a Heloc just to borrow small amounts and pay it off to increase our credit rating.
I thought this was excellent. Especially at the end with the Pros and Cons. I have watched TONS of videos on HELOCS.
Those are some great questions at 2:44 . I’m definitely interested in doing a heloc and this video is very helpful. Thanks bud
You’re welcome. However, I never recommend using a HELOC. This video is just to explain how it works
@@FIREPsyChat 😲 never recommend???
Thank you for your help. I lost my job and have debt and almost got a HELOC.
Best video addressing my concerns
I tried a home equity loan with my mortgage company. I was asking for 35k. They wanted to redo my entire loan to bring the 35k into the total mortgage balance. Then they wanted closing costs of $7600 and a $320 startup fee, and to add insult to injury, they wanted to increase my APR from 2.5% to 8.5%. To hell with them.
That’s absurd but at the same time I never found HELOC or HEL to be beneficial at all. Thank you for sharing
Love HELOC. Best tools to flow moneys & create new moneys.
Excellent content and informative! New subscriber. ❤
Looking to make some home repairs. Over a 3-5yr period. Heloc sounds like a nice option. Make the repairs and pay off the debt asap. Without having to spend my savings all at once.
Excellent explanation! 🙏
what are your thoughts on using a HELOC to finance renovations in an historic home to improve energy efficiency (new HVAC, new attic insulation, window inserts, etc.)? I a have a drafty old house with 25 yr old HVAC system, and my utilities are through the roof. I'm estimating needing 50k to do this work and estimate saving $300 a month (gas & electric bills) after energy improvements.
I am against it because the math doesn't add up to me. Now you're looking to spend $50K to save $300 a month. So if you pay $300 back to your $50k, that's almost 14 years. You're going to pay 10% in interest for 14 years? Can't you save cash and pay for the home improvement and not do the entire project all at once?
Hi. Helpful video. Thanks. What do you think of taking out Heloc to fund an rental property? Thanks for your reply in advance.
Great video! I'm looking at a HELOC to do some home improvements and you made some good points in this video. Thank you for posting.
Glad to help! Just make sure you don’t bite more than you can chew when it comes to debt
We did it last year Oct. 37k regret it the rate will got to 8% or more. Introductory rate at first of 4% My idea was to pay it down with market gains of 2023....not enough unfortunately
Thanks for the content. I'll probably go with the Home Equity Loan instead.
Thank you for sharing.
In other words,like any other credit issuer. They charge you to use your own money. Not knowing anything about this. Based on your explanation of this. One would give INTEREST in their property to another. It’s bad enough that mortgages are what they are. Then to add something like this into the mix. Just spells lien on your property to me. Great vid
You nailed it. I’m never taking out a HELOC. this video is to explain what it does and how it works
Subscribed 👍
My dad wants to take out a HELOC on our home as his brother who just moved to the states (from Mexico) wants to get a home. My uncle doesn’t qualify for a house on his own as he literally just got here less than 3 months ago and although he came to the country with around 25,000 saved, that still isn’t enough to get a home. So my dad was trying to apply for a home for him, but he was only approved for 300,000 but they would need to make a 50 to 70 K down payment, and obviously that’s a lot of money so now they’re considering having my dad get a HELOC in our property. It was bought at 147k, they owe 80k, and now it’s worth 365k. I keep telling him it’s dangerous to get a loan especially a HELOC for his brother, but it seems like he doesn’t care and is going to go forth with it.
Even more dangerous to do a loan for family. Unless it’s a gift and no repayment is expected.
Wow , ur dad will regret it, i think touching a home is dangerous he can loose he's home 🏡
@ yes. He ended up not doing it. Thankfully.
Thank you for amazing video. Great information.
Debt is dumb unless he cash flows so I am not going to continue to play these borrowing games
How do you use a HELOC on a rental property you dont live in?
good Info.
Thank you for explaining this.. they seriously don’t explain it to you, I assumed it was similar to just refi to pull your equity but no way I’m doing it just to be charged interest for it
subbed!
Bank won’t explain like TH-camrs (you) but just quickly send requirement documents to sign; after listening to this, I just sell my house, get the cash and pay none of them fees to the HELOC bank
Yep, I’m review HELOC paperwork right now. I was quoted a 9.5% interest rate. HELOC is for $75K, but I only need $22-$25K. I could actually pay it in cash. But want to be prepared for surprises, in the house I’m inheriting. The amount owed is for back property taxes, during probate. I just want to stretch payments for 1-2 years. But am not interested in making the place picture perfect, with renos. Just want out of my apartment as yearly rent is equal to property taxes.
nice video explanation on HELOCs
Thanks!
Thanks for open my eyes on a heloc obviously is a sweet trap bcz is a credit card better I open a regular credit card without put my roof in danger if something happens on the road
Just remember that credit cards can become your worst enemy if you don’t treat them with respect
@FIREPsyChat i understand, but u don't lose u home overnight using a credit card. If you open a heloc account, that is exactly what happen be a homeless for a few thausand if someone get wrong
I agree with u, right now I have small debts with home Depot & Lowe's, I owe 1,300 in total making monthly payments I'm getting there, didnt wanted touch my home n loans or anything , ( it's risky putting it property n danger)
During the interest payment period, are you able to pay more per month in hopes to pay back everything early?
Yes
That's the exact strategy of velocity banking. Pay all expenses out of it, deposit all income in it, use positive cash flow to drive down principle balance and avg daily int.
I may be looking more towards a home equity loan. I over estimated my ability to keep track of debt my interest rate is currently at 2.5 and definitely don't want to refinance the full amount
Don’t take out another debt to pay off your current debt
Its really only worth getting a HELOC if youre doing velocity banking in my eyes. If you can dump your income into it and pay expenses out of it. Its a fantastic strategy.
I think it is wiser to just use a personal line of credit for that, rather than risk losing your house in case anything happens.
With huge interest rates it is the demise of many home owners...oh and it can be called at any time!! 😮
Hello! Question, 60,000 in 5 different Credit cards and Taxes owed. 250,000 n equity. Is Heloc a good wait to pay these off?
Hey Joe, getting a HELOC is just treating a symptom of another financial problem. What’s the root cause of the $60k credit card debt and how do you never get back into it? I’ve been there. I had $110k in debt. You can schedule a complimentary coaching session with me by visiting www.firepsychat.com/coaching.
Depends on the cc interest rates. The nice thing is depending on the provider you can pay direct to your principal on the heloc on top of the interest payment. Allowing you to pay the debt off faster. If you can afford to do it this way and then not touch the heloc during the draw period after you have paid it off then your golden.
Thank you very much
No problem!
Thanks
Excellent video good job 👏
Thanks!
Not sure why anyone would want to take out a HELOC…
Would you recommend a heloc or he loan to make an investment that will generate income cash flow ?
Great video thank you
Clear and clean explanation
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My problem in getting a heloc is that these Ahole banks want to sell you a huge heloc so they make this gigantic commission. When asking for a 25k heloc they came back to me and said 100k is the minimum but I wouldn't qualify because of my income. Huh? My house is paid off so why would I put it at risk with these scamming pricks!
what are the pros and cons of having to listen to another talking head drone on about HELOC? it is easy...people are overspending with money that does not belong to them at an high rate with usually INTEREST ONLY payments ..... its not rocket science to figure out the dangers of that...get rid of the bad lamp and curtains...clutter is not needed when discussing finance.
Wtf is a droll period?
Draw., mean withdrawal.
Great video thank you