Ha! I see that! I hope you're picking up some useful information as you browse around. 😁 If there's something you'd like to learn about that I've not covered yet, please let me know! I'm due to get some more videos posted and happy to take requests!
Thanks for taking the time to comment, Gabriela! 🥰 And I'm happy to hear you found the video helpful. If you have any questions about your own situation or want help planning for a future home purchase you can reach out any time! 503-799-3711 is my number!
Hi Julee, I own a home that’s completely paid off with the exception of recently taking out a HELOC of 40k (the HELOC was to fix a couple of things in my home prior to selling… right now I am no longer selling my home) I am at a standstill of what to do because there are a quite few things that’s needs tending to… my home is a cape style house that was built in the 1950 so the rooms upstairs aren’t high, I need a new roof, and HVAC, would like to update plumbing , electrical… being that I am no longer moving I wanted to know would the right thing be to refinance (if my lender allows) to a home equity loan to conduct the repairs and gut/ remodel? I just opened the HELOC account this year and the interest rate on the account is a variable interest of 8 percent.
Hi Batisha! Thanks for your comment. 😊 You have a couple of options to fund the additional work. You could request a higher limit on your HELOC and use it for the work or you could refinance. As a general rule, a refinance makes more sense the longer you plan to keep a loan and the larger the loan amount. You pay a little more in closing costs for a refi (most of the time), but you get a lower rate (most of the time). For a loan you have for a long time, the lower rate makes up for the higher up-front costs over time. And of course the interest cost matters more the more you owe. When you're not keeping a loan long and/or borrowing very little, keeping the costs lower is more important. These are general rules of thumb, but if you want to talk about your specific situation, I'd be happy to do a little more analysis for you. Text me at 503-799-3711 or email juleef@rate.com if you want to chat!
NOT sure if you touched on this Julee but Buyers should NOT be spending their money before the closing. Be conservative. Don't buy stuff for the house they're buying. Wait until it's been bought. I know of a story where a pilot buying a house in January with a steep driveway bought a new Jeep for that driveway a day before the closing and he blew it. He couldn't close on the house.
@marygemba7678 Very good point! In the video, I mention keeping everything status quo, to the greatest extent possible... so I kind of hint at not making big changes like that. I had folks planning to buy a home more in mind for the tips and info I shared here. Once you have a contract accepted and are in the process of buying a home, keeping everything steady-eddy and changing nothing (don't spend money on new stuff, don't open new credit, don't buy a car, etc) becomes much, much more critical. Thanks for bringing this up!!
Hello thank you very much for sharing your knowledge very informative can you please help me with this question I have paid off property worth 300 thousand and a new property mortgage 740 thousand this is the only debt I have apart from utilities is it a good idea to take a Heloc from the paid off mortgage to reduced a loan from a new home thx
Hi Eunice! You're welcome. I'm happy you found my channel. 😁 I'll give the best answer I can, based on what you've shared: The key question is what the interest rate is on the new $740,000 loan versus the rate you could get on a HELOC. You would only want to borrow money from a HELOC to pay down your mortgage if you the HELOC had a lower rate. Moving debt from a higher to a lower rate will reduce your interest cost. You could pay the same amount of money every month and pay your debt off faster because more of each payment would go to principal and less to interest. My hunch, however, is that the rate on a HELOC will actually be higher. Most HELOCs are based on the Prime rate, which is 8.5% at the time I'm typing this. If your mortgage is at (say) 7%, you wouldn't want to pay off 7% debt with an 8.5% loan. (No matter what anybody tells you... especially anybody selling a "velocity banking" HELOC.) I hope that helps, but feel free to reach out if you have other questions or if I didn't understand what you were asking. You can text me at 503-799-3711.
I have a collection that keeps bouncing around to different collection agencies. It seems as though other collection companies are buying the debt and it reappears on my credit report with a new collection company. What do you do in that case? Should I pay it off?
Hi Nikki! That's so annoying... I'm sorry you're dealing with that. I would NOT recommend just paying it off. In general paying off a collection doesn't help your credit score and can even harm it. The thing I would recommend you do is reach out to the collection agency and try to get them to agree to delete the account (like it never existed) in exchange for paying them. "Pay for deletion" is what this usually gets called. I'll cross my fingers you can haggle with them. Get whatever they agree to do in writing before you pay them though!
Thank you! I’m new and doing a deep dive into your channel!😊
Ha! I see that! I hope you're picking up some useful information as you browse around. 😁
If there's something you'd like to learn about that I've not covered yet, please let me know! I'm due to get some more videos posted and happy to take requests!
Fantastic informative video
Thanks for taking the time to comment, Gabriela! 🥰
And I'm happy to hear you found the video helpful. If you have any questions about your own situation or want help planning for a future home purchase you can reach out any time! 503-799-3711 is my number!
Hi Julee,
I own a home that’s completely paid off with the exception of recently taking out a HELOC of 40k (the HELOC was to fix a couple of things in my home prior to selling… right now I am no longer selling my home) I am at a standstill of what to do because there are a quite few things that’s needs tending to… my home is a cape style house that was built in the 1950 so the rooms upstairs aren’t high, I need a new roof, and HVAC, would like to update plumbing , electrical… being that I am no longer moving I wanted to know would the right thing be to refinance (if my lender allows) to a home equity loan to conduct the repairs and gut/ remodel? I just opened the HELOC account this year and the interest rate on the account is a variable interest of 8 percent.
Hi Batisha! Thanks for your comment. 😊
You have a couple of options to fund the additional work. You could request a higher limit on your HELOC and use it for the work or you could refinance.
As a general rule, a refinance makes more sense the longer you plan to keep a loan and the larger the loan amount. You pay a little more in closing costs for a refi (most of the time), but you get a lower rate (most of the time).
For a loan you have for a long time, the lower rate makes up for the higher up-front costs over time. And of course the interest cost matters more the more you owe.
When you're not keeping a loan long and/or borrowing very little, keeping the costs lower is more important.
These are general rules of thumb, but if you want to talk about your specific situation, I'd be happy to do a little more analysis for you.
Text me at 503-799-3711 or email juleef@rate.com if you want to chat!
NOT sure if you touched on this Julee but Buyers should NOT be spending their money before the closing. Be conservative. Don't buy stuff for the house they're buying. Wait until it's been bought. I know of a story where a pilot buying a house in January with a steep driveway bought a new Jeep for that driveway a day before the closing and he blew it. He couldn't close on the house.
@marygemba7678 Very good point! In the video, I mention keeping everything status quo, to the greatest extent possible... so I kind of hint at not making big changes like that. I had folks planning to buy a home more in mind for the tips and info I shared here.
Once you have a contract accepted and are in the process of buying a home, keeping everything steady-eddy and changing nothing (don't spend money on new stuff, don't open new credit, don't buy a car, etc) becomes much, much more critical. Thanks for bringing this up!!
EXCELLENT VIDEO!
Thanks so much! I'm glad you enjoyed it and hope it helps in your planning.
Reach out any time if I can be helpful in any way. 😁
Hello thank you very much for sharing your knowledge very informative can you please help me with this question I have paid off property worth 300 thousand and a new property mortgage 740 thousand this is the only debt I have apart from utilities is it a good idea to take a Heloc from the paid off mortgage to reduced a loan from a new home thx
Hi Eunice! You're welcome. I'm happy you found my channel. 😁
I'll give the best answer I can, based on what you've shared:
The key question is what the interest rate is on the new $740,000 loan versus the rate you could get on a HELOC. You would only want to borrow money from a HELOC to pay down your mortgage if you the HELOC had a lower rate. Moving debt from a higher to a lower rate will reduce your interest cost. You could pay the same amount of money every month and pay your debt off faster because more of each payment would go to principal and less to interest.
My hunch, however, is that the rate on a HELOC will actually be higher. Most HELOCs are based on the Prime rate, which is 8.5% at the time I'm typing this. If your mortgage is at (say) 7%, you wouldn't want to pay off 7% debt with an 8.5% loan. (No matter what anybody tells you... especially anybody selling a "velocity banking" HELOC.)
I hope that helps, but feel free to reach out if you have other questions or if I didn't understand what you were asking. You can text me at 503-799-3711.
How do I reach you privately?
Thank you
Hi Janine! I think you beat me to the punch and we already talked, but if not, you can always call or text me at 503-799-3711. 😁
I have a collection that keeps bouncing around to different collection agencies. It seems as though other collection companies are buying the debt and it reappears on my credit report with a new collection company. What do you do in that case? Should I pay it off?
Hi Nikki! That's so annoying... I'm sorry you're dealing with that.
I would NOT recommend just paying it off. In general paying off a collection doesn't help your credit score and can even harm it.
The thing I would recommend you do is reach out to the collection agency and try to get them to agree to delete the account (like it never existed) in exchange for paying them. "Pay for deletion" is what this usually gets called. I'll cross my fingers you can haggle with them. Get whatever they agree to do in writing before you pay them though!
Help I not a loan
Hi Anthony! I replied to your mother comment with a few ideas you could try!
@@workshopmortgage I don’t think my mother is on TH-cam she’s 85.
@@anthonycooper275 LOL. Just noticed this comment... I meant "other" not "mother. 😆