Why Are HELOCs Bad? - What Sucks about a Home Equity Line of Credit

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  • Опубліковано 26 сер 2024
  • In this video, I go over why HELOCs are bad and share with you the risks involved in obtaining a Home Equity Line of Credit. Wthere you hate HELOC or Love HELOCs, you need to be aware of the risks involved before obtaining and using one for building wealth, consolidating debt, etc.
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КОМЕНТАРІ • 26

  • @Arthur-sf6cn
    @Arthur-sf6cn 17 днів тому

    Great advice, you answered my questions.

  • @tylorbiersack7284
    @tylorbiersack7284 4 місяці тому +2

    All risk no reward just make extra payments

    • @JayCosta
      @JayCosta  4 місяці тому

      Depends on the situation. Thanks for watching!

  • @phi765
    @phi765 5 місяців тому +1

    Very informative! Thank you

    • @JayCosta
      @JayCosta  5 місяців тому

      youre welcome!

  • @swolenation8550
    @swolenation8550 8 місяців тому +2

    Jay you should change your UA-cam name to the HELOC guy. Great content man

    • @JayCosta
      @JayCosta  8 місяців тому

      I appreciate that. I do try to do more topics, but UA-cam seems to like my HELOC content. Thanks for tuning in. God Bless!

  • @hedgefund996
    @hedgefund996 8 місяців тому +1

    Good Educational Content

    • @JayCosta
      @JayCosta  8 місяців тому

      Thanks for watching. God Bless

  • @robertryan3490
    @robertryan3490 8 місяців тому +2

    Is prime -0.60% a good HELOC rate?

    • @JayCosta
      @JayCosta  8 місяців тому

      Very good! But make sure its not a promo APR. Thanks for watching!

  • @hedgefund996
    @hedgefund996 8 місяців тому +1

    Good Content, By The Way You Have A New Subscriber

    • @JayCosta
      @JayCosta  8 місяців тому

      Welcome aboard. Thanks for watching. God Bles

  • @RonnieAlmendarez
    @RonnieAlmendarez 3 місяці тому

    Do you think alot of people lost thier homes in 2008 because of helocs?

    • @JayCosta
      @JayCosta  3 місяці тому

      Now responding LIVE here: ua-cam.com/video/2DcWqBiewGM/v-deo.html

  • @toddroy9558
    @toddroy9558 8 місяців тому +1

    We used it on my father in laws house to build our house. Now we’d like to use it on our house to finish our basement to create an air b and b. What do you think?

    • @JayCosta
      @JayCosta  6 місяців тому

      Sure, but I would use a fixed rate HELOC if it is long term. Or better yet, cash out refi at the end of the basement work. Thanks for watching!

  • @aaronmckinney5938
    @aaronmckinney5938 6 місяців тому +1

    Should I use a home equity loan to put new windows in a new furnace windows are 40 years old and furnace is over 30 years old and some credit card debt? Instead of the HELOC thanks

    • @JayCosta
      @JayCosta  6 місяців тому

      Nope. Pay cash unless its an emergency and you have no heat. Thanks for watching!

  • @cjusino85
    @cjusino85 8 місяців тому +1

    What part of Jerzy you from? I used to live in Woodbridge. Thanks for your tips and advice. I plan to get a heloc to do a BRRRR on my 2nd rental property as i type this message.

    • @JayCosta
      @JayCosta  8 місяців тому +1

      Northern Bergen County. Close to GWB. Keep me posted! Thanks for watching and God Bless.

  • @nfestocks8831
    @nfestocks8831 6 місяців тому +1

    I have house that I only have $40k left on the private mortgage with 0 interest. House worth over 500k, I would like to borrow 140-170k build a new house on land lot I owned & sell the house Do you think it’s a good idea to do a cash refinance or home equity loan?

    • @JayCosta
      @JayCosta  4 місяці тому

      Sell which house? Your house or the one you are building?

  • @4u2c95
    @4u2c95 8 місяців тому +5

    A heloc is bad, no matter the rate. If you need to borrow money from the so-called equity from your house, you're already in a bad situation. It'll be easier to get go get a part-time or better job rather than put you or your family in a worse situation. Or, it could be that you never really afford the house in the first place. Debt of any kind is bad. There's no good vs. bad debts.

    • @investmentanalyst779
      @investmentanalyst779 8 місяців тому +2

      False.
      A common use of a HELOC is to repair / remodel the house. Calculate the return of using a HELOC to renovate a home before selling. Could be a $100,000+ difference in tax free returns.

    • @JayCosta
      @JayCosta  8 місяців тому +2

      I agree and disagree. And it depends on what you are using it for. If you are using it to fund lifestyle and pay bills, yes VERY BAD. And better off not having a HELOC at all. But if you are using it SHORT TERM to invest in real estate, it can really help grow your net worth quicker than without. You need to be smart and it is not for everybody. Thanks for tuning in. God Bless