HELOC Explained (and when NOT to use it!)

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  • Опубліковано 30 січ 2025

КОМЕНТАРІ • 994

  • @tonysilke
    @tonysilke 13 днів тому +697

    While I've found that owning a home and rental properties haven't been the most lucrative investments for me, I still cherish the experience and sense of ownership. However, I've come to realize that the stock market is where I can truly grow my wealth.

    • @Nernst96
      @Nernst96 13 днів тому

      After years of building a rental property portfolio, I finally burned out and decided to sell. Now, I'm sitting on about $1 million and looking for a new opportunity to grow my wealth. I'm considering investing in the stock market, but I want to make sure I'm making a smart decision. I've heard stories about people losing money in the market, but I've also seen how it can be a powerful tool for building wealth over time. I'd love to hear your thoughts - what do you think I should consider as I explore this option?

    • @PhilipDunk
      @PhilipDunk 13 днів тому

      A cautious investment approach is important. Consider allocating 40-50% of your portfolio to secure investments and consulting with a financial expert to ensure informed decision-making

    • @PatrickLloyd-
      @PatrickLloyd- 13 днів тому

      Absolutely! Most undervalue experts, but their expertise and risk mitigation strategies are invaluable for savvy investors. For those with busy schedules, monitoring the market is challenging, so we delegate to experts. Personally, I've seen significant growth by working with an expert - my portfolio has grown to $1.3M, a 45% increase from last year, with robust diversification and inflation hedging.

    • @RobbieNixon-d1w
      @RobbieNixon-d1w 13 днів тому

      @@PatrickLloyd- As someone new to stock investing, I'd greatly appreciate it if you could direct me to this expert. I'm eager to learn and avoid costly mistakes

    • @PatrickLloyd-
      @PatrickLloyd- 13 днів тому

      Sophie Lynn Carrabus is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.

  • @gideonwilson1898
    @gideonwilson1898 2 роки тому +641

    Chandler, you forgot to mention that after taking a HELOC and borrowing some money out of it, you can lock in a low rate for just $100 to $150. That way, you rate doesn't go up. Also, you can write off the HELOC interest rate in your taxes. HELOC is awesome and it has done big things for me.

    • @MichaelMerritt
      @MichaelMerritt 2 роки тому +27

      Be aware, you can no longer write off heloc interest payments for things like a down payment on a house from my readings. But speak to a tax advisor.
      I also concur that you can find fixed apr’s for an additional fee. I know Banner bank on the west coast offers them.

    • @TheSquiggleySpooch
      @TheSquiggleySpooch 2 роки тому +13

      dude you can write off the interest? Woohoo! i didn’t know that and just got one for some refurbishment 🎉🎉🎉

    • @derekwilliams3093
      @derekwilliams3093 2 роки тому +3

      Do you have any type of resources such as book titles or anything to further my knowledge? I have ordered a couple books but, it's always great to get other perspectives. Thank you in advance! Merry Christmas

    • @noy6184
      @noy6184 Рік тому +8

      Can you still lock interest nowadays?

    • @fabiannino4106
      @fabiannino4106 Рік тому +6

      Is it possible to get a fixed rate on a heloc if your credit score is over 800?

  • @PauleAraiza
    @PauleAraiza 3 місяці тому +446

    A guy asked if he should take a HELOC for a home renovation. I said, "I wouldn't," and suggested saving instead. He didn't reply. Many homeowners are surprised by the idea of saving money instead of using home equity for projects like a backyard deck. I chose to save and invest in the stock market instead, which has helped me build long-term financial stability without taking on additional debt.

    • @Dollrnri
      @Dollrnri 3 місяці тому +3

      What advice would be given to someone new to investing with around $80,000 to begin with?

    • @AddilynTuffin
      @AddilynTuffin 3 місяці тому +3

      @@Dollrnri I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.

    • @gregorywhem
      @gregorywhem 3 місяці тому +3

      I started at age 42 with about $18,800 which is now worth about $1.2M at age 50. Would be happy to share how, and it was definitely not index funds (pablum advice for the masses), but by partnering with a financial advisor. I've been with mine for the past 8 years and have seen why esteemed investors highly seek their expertise.

    • @NO-TIME170
      @NO-TIME170 3 місяці тому +1

      Hello, I'm interested in trying this out. Who is your advisor, and how can I contact them?

    • @gregorywhem
      @gregorywhem 3 місяці тому

      @@NO-TIME170 I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with "Jennifer Leigh Hickman" for years and highly recommend her. Look her up to see if she meets your criteria.

  • @KennedyVerbruggen
    @KennedyVerbruggen 3 місяці тому +578

    I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

    • @type-r3x
      @type-r3x 3 місяці тому +2

      Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

    • @brantheeskimo
      @brantheeskimo 3 місяці тому +3

      I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.

    • @PremSteve-yg4de
      @PremSteve-yg4de 3 місяці тому +1

      This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation

    • @brantheeskimo
      @brantheeskimo 3 місяці тому

      Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with "Rebecca Nassar Dunne" for the last five years or so, and her returns have been pretty much amazing.

    • @antoniaribeiro8073
      @antoniaribeiro8073 3 місяці тому

      Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

  • @RafetMert-qs3kw
    @RafetMert-qs3kw Рік тому +477

    Facing a financial crunch, especially as seniors, we're pondering the idea of cashing in on our home equity. The question is, should we invest the money, rent, or relocate?

    • @MimaLopez-jt4vq
      @MimaLopez-jt4vq Рік тому +3

      Homeowners seem to be increasingly exploring home equity, especially when faced with critical needs. It's a better option than borrowing from credit cards.

    • @MimaLopez-jt4vq
      @MimaLopez-jt4vq Рік тому

      Any suggestions on how to spot a reputable broker with adequate knowledge of both markets?

    • @cashrules520
      @cashrules520 Рік тому +4

      I seen this post on at least 6 different videos my goodness. I hope you got your answers. You can just pick up a phone call multiple banks

    • @Imsosmrt1999
      @Imsosmrt1999 10 місяців тому +4

      SCAM

    • @ChrisLane4life2013
      @ChrisLane4life2013 10 місяців тому

      Invest

  • @skoopqueen
    @skoopqueen 7 місяців тому +106

    I didn’t achieve financial freedom until I turned 40. As a US citizen, I raised capital by taking out a home equity loan. The interest rate was much lower than other loans, which made it a smart choice. With patience and discipline, I reinvested my earnings and avoided impulsive decisions. This strategy helped me grow my wealth, eventually allowing me to buy a new home and a car. If you’re looking to raise capital and achieve financial freedom, consider this approach..😊

    • @AaliyahRash89
      @AaliyahRash89 7 місяців тому

      How did you qualify for a home equity loan,what types of investments did you make with the loan ?

    • @skoopqueen
      @skoopqueen 7 місяців тому

      I’m glad you found my story interesting.. I couldn’t have achieved this without the help of Regina Louise Collaro,

    • @skoopqueen
      @skoopqueen 7 місяців тому

      an amazing financial advisor. Regina's expertise and guidance were crucial in helping me understand the best strategies for leveraging my home equity and making smart investments.

    • @skoopqueen
      @skoopqueen 7 місяців тому

      She not only helped me secure a favorable home equity loan but also provided invaluable advice on where to invest and how to stay disciplined. Her personalized approach and deep knowledge of financial markets made a huge difference in my journey to financial freedom.

    • @ugojazzy7812
      @ugojazzy7812 7 місяців тому +1

      It's challenging to find a reliable advisor, and I appreciate your input. Seeing the successes you've achieved through Regina, I would love to have access to her if you wouldn't mind sharing how.

  • @77thNYSV
    @77thNYSV 2 роки тому +73

    I just opened a $135k heloc through my credit union. Closing costs were only $400.
    Going to use it as a down payment for a new home so I can keep my old home as rental property.

    • @5stars976
      @5stars976 10 місяців тому +6

      Im thinking about it too , how is it working for you ?

    • @ChrisLane4life2013
      @ChrisLane4life2013 10 місяців тому +3

      I’m sure if you invest on long term,would say it’s gonna turn out a great year for you

    • @SVTPalacios
      @SVTPalacios 8 місяців тому

      Hi which credit union do you have ? My current credit union doesn’t offer Heloc

    • @TheAuToMaTiC82
      @TheAuToMaTiC82 5 місяців тому +3

      As someone that works for a top ten bank in the US, I can confirm that this is the way.
      HELOCS always made me nervous just because the idea of your home being collateral is scary in itself, but if you use it responsibly you can use it to multiply your real estate portfolio instead of losing anything.
      All the rich people I've helped that own multiple homes and are enjoying life almost always have HELOCS just so they have funds available to pounce when the housing market crashes.

  • @Martin944turbo
    @Martin944turbo 2 роки тому +260

    Good points - I'd use a HELOC for emergencies and renovations to increase the property value of your current home. I recommend using a fixed loan for a rental properties for budgeting purposes but hey, at the end of the day everything is a gamble and it's whatever you're comfortable with.

    • @lilCaribbean77
      @lilCaribbean77 Рік тому +1

      I believe he's saying heloc usually used for the downpayment of investment properties 😉

    • @albajessicalove
      @albajessicalove Рік тому +1

      Maria Brisbane helped me secure HELOC with 650 credit score

    • @albajessicalove
      @albajessicalove Рік тому +1

      ​@@lilCaribbean77check her out on Google or check her website

  • @GeorgiaMoore.
    @GeorgiaMoore. Рік тому +40

    Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

    • @genavazquez2943
      @genavazquez2943 Рік тому

      I subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your adviser

    • @GeorgiaMoore.
      @GeorgiaMoore. Рік тому

      Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $485k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.

    • @Hermanjackson89
      @Hermanjackson89 Рік тому

      Wow, that's stirring! Do you mind connecting me to
      your advisor please. I desperately need one to diversified my portfolio.

    • @Chuckeandrews
      @Chuckeandrews Рік тому

      I've actually been looking into advisors lately, the news I've been seeing in the market hasn't been so encouraging. who's the person guiding you?

    • @GeorgiaMoore.
      @GeorgiaMoore. Рік тому

      Cioffibrown Alison’ is the licensed fiduciary I use. he works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television.
      You can use something else. for me he strategy works hence my result. He provides entry and exit point for the securities I focus on.

  • @michaelstewart3979
    @michaelstewart3979 3 роки тому +91

    Yo, nice content. I got a line of credit on my home which I used to purchase 3 more rentals. At time of withdrawal of my line, the bank actually offered me a fixed rate of 3.15 for 25 year pay off period. Awesome, no adjustable rate for me

    • @zkeztv4287
      @zkeztv4287 3 роки тому +1

      Hi, what bank you are dealing with?

    • @LivinginInlandEmpire
      @LivinginInlandEmpire 3 роки тому +1

      How you get fixed. Did you get a promotion or ask for one?

    • @FlyingT1DMami
      @FlyingT1DMami 2 роки тому +1

      Can you say what lender or bank did you use?

    • @romoismael49
      @romoismael49 2 роки тому

      ?

    • @crysty43
      @crysty43 2 роки тому +2

      Nice you’re bank listened to your needs. You first got a heloc because you probably didn’t know how much you needed or when you will need it and then once you figured out how much you’re rentals costed and how long it will take to pay back (mostly likely more than a year) your bank converted the heloc to a heil (home equity installment loan)

  • @forrestswims9443
    @forrestswims9443 3 роки тому +42

    Wow, this video couldn’t have come at a better time! I just closed on a $80k HELOC yesterday!

    • @bwingfield2
      @bwingfield2 3 роки тому +4

      Yeah, the algos are real…

    • @dudewhat2585
      @dudewhat2585 10 місяців тому +2

      How is it going now?

    • @SraZepol
      @SraZepol 6 місяців тому +1

      What bank?

  • @StevenDonald2
    @StevenDonald2 4 місяці тому +335

    Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

  • @man-observing-world
    @man-observing-world Рік тому +4

    Great synopsis, wish I watched this video before watching all the others. Definitely going to subscribe now.

  • @francispoblete9660
    @francispoblete9660 2 роки тому +5

    Video starts at 8:10. Good info!

  • @alwaysTTG
    @alwaysTTG 2 роки тому +330

    Great video! Only feedback is that if you have a HELOC, you can still refinance. The new lender will have to subordinate the HELOC’s lien position, and you can choose to either keep or close the HELOC at that point.
    I’m a loan officer 😉

    • @ohudidntknow8835
      @ohudidntknow8835 2 роки тому +2

      So If I cash out refi, can I or should I refi for a lower rate if available

    • @alwaysTTG
      @alwaysTTG 2 роки тому +7

      @@ohudidntknow8835 by all means, if it’s available 100%. But rates right now are the highest they have been in over a decade. I am a loan officer myself and I can help you out with any questions you may have!

    • @theschmiller
      @theschmiller 2 роки тому

      Yep I did that !

    • @AloneNTheZone
      @AloneNTheZone 2 роки тому

      Figure company is doing a fixed interest rate. Does that mean the interest doesn’t change?

    • @alwaysTTG
      @alwaysTTG 2 роки тому +2

      @@AloneNTheZone that’s correct. Fixed = locked in rate for x Terms. HELOCs are 99% of the time variable, meaning they fluctuate with the Fed funds rate

  • @andriyatomick9732
    @andriyatomick9732 11 місяців тому +1

    thanks for education for people who come from other countries and have no clue how to survive in this country..talking about myself..learn a good lesson today..thanks again and wish you a good luck in your business project.

  • @MrVisde
    @MrVisde 2 роки тому +7

    I’m looking into a HELOC right now for some renovations. We’re already locked into a low rate with our mortgage…the current rates are higher than what we already have, so a cash out refinance seems out of the question. I like the idea of a HELOC, but there’s the variable interest rates AND it’s using our home as collateral.

  • @jasonax1523
    @jasonax1523 Рік тому +8

    Right now, pretty much all banks have suspended HELOCs. I just got one through Bank of America. It's the prime rate (currently 8% plus 1.37%). However, I did get a 6 mo intriductory rate of 6.74%. Not too bad.

  • @pinoylyfeinlasvegas7793
    @pinoylyfeinlasvegas7793 Рік тому +4

    I’m glad I found this video.
    It broadened my knowledge about refinancing and HELOC.

  • @juanabarajas76
    @juanabarajas76 3 місяці тому +1

    Im not sure if a cash out refinance is worth it since my current home Interest is 2.5%. Or a Heloc which is 8% locked or 2.99 variable

  • @eljskitchen
    @eljskitchen 2 роки тому +5

    Great video. I need to get new windows in my house ( $20,000). Should i use a heloc for it. I have $200, 000 in equity.

    • @cherylmorris2880
      @cherylmorris2880 2 роки тому +3

      If your current windows leak you'll also SAVE$ on utilities after new ones installed!

  • @scooter10421
    @scooter10421 2 роки тому +6

    This was the best explanation of a HELOC.

  • @miracleman75
    @miracleman75 2 роки тому +3

    My heloc has gone up from 3.75 to 8% interest this year.
    So I have applied for credit cards with 18-24 months of 0% interest. I’m making purchases with the credit card to free up money to pay down the heloc. Same amount of debt but less interest.

    • @DSNCB919
      @DSNCB919 Рік тому

      So either way ur fucked

    • @bluemm2852
      @bluemm2852 5 місяців тому

      That is a VERY dangerous game you're playing. Better to be on more solid ground by refinancing to a lower interest rate. Cut up the credit cards and live within your means. Even if its boring its better than losing everything.

    • @miracleman75
      @miracleman75 5 місяців тому

      @@bluemm2852 that’s good advice. Fortunately, I should have the heloc and credit cards paid off before the end of the year.

  • @taylorsessions4143
    @taylorsessions4143 3 роки тому +16

    Man, I've been looking for a video like this months. Thank you!

  • @heslind
    @heslind 2 роки тому +4

    I refinanced 2 years ago at 2.5% but now I need to put money into the house for updating. Would I be better off with a heloc or home equity loan or cash out refi

  • @tech4ever1
    @tech4ever1 Місяць тому +1

    We are in a bind and until I land a new job, arent able to pay the mortgage. Which method could we use to help? Or is it impossible? Credit 780 and about 80k in equity.

  • @nicolelopez8199
    @nicolelopez8199 2 роки тому +39

    A HELOC is definitely better than refinancing IMO. No need to pay interest on money your not using. I like that it's revolving credit.

    • @bebejesisoto
      @bebejesisoto 2 роки тому +5

      I agree I want to do a heloc and being I bought last year with 30 year 3% fixed I dont see myself refinancing anytime soon with current rates.

    • @n0rbakn0rbak38
      @n0rbakn0rbak38 2 роки тому +1

      HELOC is variable. Heloans is fixed. HELOC is about 5.99% includes discounts of 0.250% for automatic payment and 0.600% for a $60,000 initial withdrawal. A Heloans or HELOC are not meant to refi property.

    • @janedoe6071
      @janedoe6071 Рік тому +1

      So it’s like a credit card basically ???? That sounds bad for financially irresponsible people is it??

    • @GTJC
      @GTJC Рік тому +1

      @@n0rbakn0rbak38 all HELOC rates are not variable

    • @albajessicalove
      @albajessicalove Рік тому

      ​@@GTJCMaria Brisbane helped me secure HELOC with 720 credit score

  • @mikelarry-5537
    @mikelarry-5537 21 день тому +1

    What if I own a home but don't want to sell it. Should I get a Heloc to fund building homes on some land I own? Or should I just sell the home and use that money for funding?

  • @TheNerdSwagg
    @TheNerdSwagg 3 роки тому +5

    What if you got a low interest rate already 2.3% doing a refinance wouldn’t be convenient right? Doubt they would give a lower interest rate

    • @codyb2065
      @codyb2065 2 роки тому

      Same situation any advice current rate 2.5

  • @linadevia5988
    @linadevia5988 5 місяців тому +1

    Do you advise to pull a heloc to pay credit cards debt?

  • @renairving3530
    @renairving3530 2 роки тому +5

    Good morning and Happy Friday! This content is right on time for me, I’m in the process of getting a HELOC or a Home Equity Loan and I’m trying to see which one would work best for me. I’m paying a few bills off, minor home remodeling and getting my car fixed.

  • @maribel7360
    @maribel7360 5 місяців тому +2

    This was the perfect video for me to watch. Thank you! I'm almost breathing a sigh of relief.

  • @robertcloe2140
    @robertcloe2140 Рік тому +5

    When you refinance. your heloc is rolled into your refinance. Because it's part of the house. It doesn't hinder your refinance. That would be your debt to ratio,credit score and the amount of money you earn.

  • @sheryljohnson9962
    @sheryljohnson9962 День тому

    Is there such fee as county fee to charge for heloc plus their fee total charge $3700.

  • @Lopezmvp14
    @Lopezmvp14 2 роки тому +8

    Question Chandler - What if you want to use equity for an investment property and you have a crazy low interest rate so refinancing would put you +3% ?

    • @albajessicalove
      @albajessicalove Рік тому +1

      Maria Brisbane helped me secure HELOC with 650 credit score

    • @albajessicalove
      @albajessicalove Рік тому +1

      check her out on Google or check her website

  • @worldchanges10
    @worldchanges10 Рік тому +1

    Well said, but can you describe in details on paying off a mortgage from the Heloc ?

  • @lestatstaton7856
    @lestatstaton7856 3 роки тому +3

    Can you use a HELOC to pay off a credit card? If Im using the HELOC to BRRRR and use my credit cards on the renovation for cashback/points, I can pay off the CC Renovation cost with the HELOC right?

  • @marthafitch4030
    @marthafitch4030 Рік тому +1

    Can you use it to put it to a down payment for a home?

  • @tweems9331
    @tweems9331 3 роки тому +4

    My question is: I'm about 15 years away from retirement and have 8 years left on my loan. Many have told me I should refi to 30 years and pull out the cash. Why would someone want a house payment when they are 60 to 80 years old, when their income becomes less thru retirement, unless purchasing a rental? Isn't it better to try to be debt free when you retire?

    • @robert.reverse
      @robert.reverse 3 роки тому

      look into a reverse mortgage

    • @micd9256
      @micd9256 2 роки тому +5

      That’s horrible advice. Focus on paying off the mortgage then maximize your income those final 7 years to increase the amount of money you have for retirement.

  • @inclantayakajackie284
    @inclantayakajackie284 2 роки тому +1

    So we want to buy property outright with a HELOC for 70,000. We have like $250,000 in equity in our house. We only want to use the $70,000 no more and want to own the land outright by doing this. Does this make sense to do??

  • @IAmVik01
    @IAmVik01 Рік тому +10

    Even if you open a home equity line of credit and never use it, you won't have to pay anything back. Keep in mind that whether you use your line of credit or not, you may be charged an annual fee, which is the cost you pay for having the line of credit available for when you need it.

  • @directedbydavid
    @directedbydavid 2 роки тому +1

    but how much is the monthly payback payment? if i get a $100k heloc, and spend $10k of it. How long do i have to pay that back? and how much will my payment be??

  • @Jadeish01
    @Jadeish01 2 роки тому +4

    Nice thank you for this video! You mentioned it's usually a couple hundred to access the money, is that closing costs?
    I just spoke to a lender that mentioned HELOC closing costs are like 6k-7k on a $250k loan... maybe seems high?

  • @Monothiest247
    @Monothiest247 Рік тому +1

    I got 80k in debt. My property had 500k in equity. Do I go get a heloc to pay my bills? Or do I refi?

    • @paulmark4865
      @paulmark4865 Рік тому

      It really isn't about how much you save, it's about how you manage your money. Whether you work to earn income or invest, it still boils down to income Vs expenses, so yeah you may look into investment advisors for a strategy that suits your timing.

    • @Imsosmrt1999
      @Imsosmrt1999 10 місяців тому

      SCAM

  • @garay12341
    @garay12341 2 роки тому +8

    I recently did a heloc with a fixed rate with Figure they offer 5,10,15 and 30 years. They didn’t use an appraisal but they checked the county records vrs what I own on my mortgage

    • @cwr8618
      @cwr8618 2 роки тому

      don't you have to draw the entire amount on the first draw though? i was looking into figure but that's a huge problem if you want to meter your draws

    • @garay12341
      @garay12341 2 роки тому +1

      @@cwr8618 yes I think there is no other option. But even if I didn’t need all that cash I worked around it with the payments.

    • @cwr8618
      @cwr8618 2 роки тому

      @@garay12341 curious how you covered the payments so fast. we're trying to find a funding option to build a couple units. but with permitting and construction times, won't see revenue for at least a year

    • @garay12341
      @garay12341 2 роки тому

      @@cwr8618 yea I’m building a house. I started by using lowes and 3 Home-depot credit cards. When I was paying minimum payments the really give me high credit limits. Also some chase credit cards for material I can’t find at those stores. I took the lowest payment at figure which is 30 years fixed. Like $500 for $90k still height but I paid some credit cards like chase $300 minimum payment for 6k and some of the Home Depot cards. My monthly payment didn’t go up and I still have about 80k to finish up the house. I’m on a final inspection though. Thinking on refinancing to pay everything off for lowest interest if I don’t sell.

  • @saralongoria4932
    @saralongoria4932 11 місяців тому

    What about using a HELPC for home renovations / improvements?

  • @emeraldthompson1270
    @emeraldthompson1270 2 роки тому +3

    Hi Chandler, hope all is well. Bank Of America approved me for a 100k Heloc @ a FIXED RATE of 7.75 for 30 years. The variable rate was 7.50 so I went with the fixed. I can withdraw for 10 years. What your thoughts?

  • @cwr8618
    @cwr8618 2 роки тому +2

    How about a HELOC to pay for the addition of a couple rental units on your property ?

  • @adamjursell
    @adamjursell 2 роки тому +11

    There are both variable rate and fixed rate HELOCS. Fixed rate HELOCs won't change even if the market does, locked in for whatever time span you choose when applying. Just got a HELOC at 6% for 10 years to consolidate a lot of high rate debt like credit cards.

    • @jermainewilliams4765
      @jermainewilliams4765 2 роки тому +1

      Those a Heloc based on credit score?

    • @tycassimire8316
      @tycassimire8316 2 роки тому +1

      With whom did you get the Heloc at 6%

    • @adamjursell
      @adamjursell 2 роки тому

      @@tycassimire8316 My local credit union, had to keep it under a certain percentage of the value of the home vs the loan amount, but yeah 6%.

    • @albajessicalove
      @albajessicalove Рік тому

      Maria Brisbane helped me secure HELOC with 650 credit score

    • @albajessicalove
      @albajessicalove Рік тому

      ​@@adamjursellMaria Brisbane helped me secure HELOC with 650 credit score

  • @DenedraWatson
    @DenedraWatson 7 днів тому

    Thank you for explaining that...very informative

  • @dougf9900
    @dougf9900 2 роки тому +171

    One thing to remember on a HELOC is that if property values fall, the bank can cut you off from using it. Had that happen to me once.

    • @SLCKaled
      @SLCKaled 2 роки тому +21

      Thank you. This super important

    • @phillipmardis9267
      @phillipmardis9267 2 роки тому +7

      This is what I’ve been curious about.

    • @mgallegos4708
      @mgallegos4708 2 роки тому +21

      That’s why you should withdraw it all and put it to good use. Otherwise, the risk is there the bank will cut you off if the market value waivers.

    • @sammittal39
      @sammittal39 2 роки тому +3

      Need to have a bank that manages risk appropriately. Some bank allow you to leverage a lot but you wanna stay on 70-75% of the appraised value which can protect you from the downside risk.

    • @oshitomaha
      @oshitomaha 2 роки тому +7

      You seem to have experience. I have an approved HELOC of 100k. I’m using 40k (25% down) for this duplex where I’ll be cash positive $800 monthly. How do you go about paying the HELOC itself after already paying mortgage on the investment property? Should I combine them? Or refinance? What do you think?

  • @GeorgeShapiro-l2p
    @GeorgeShapiro-l2p Рік тому +1

    Hello! Great video. I was wondering if you wouldn't mind taking a stab at answering my question - I was recently offered to participate in the purchase of a couple of businesses through private equity and am trying to determine the best way to fund these deals/opportunities. Both have an approximate payback period of 1yr. I was originally thinking to use the equity I have in an investment property ($195k mortgage at 3.125%, $350k Zestimate). This property was just put into an LLC but has not yet been taxed as part of a business. Thanks!

  • @workandplay717
    @workandplay717 Рік тому +3

    Hey @Chandler the HELOC as a downpayment is something I am actually doing this right now. There are FIXED rate HELOCs too. So it works if you're not doing a variable rate which is always risky.

  • @keithheck4193
    @keithheck4193 2 роки тому

    I s a HELOC good If I have to replace my backyard fence for say 8000.00?

  • @ninavorobeva4927
    @ninavorobeva4927 3 роки тому +13

    I pulled my HELOC to buy an investment property and my credit score plummeted from 780 to 560. What can I do here? I was hoping the credit bureaus would categorize HELOC as "mortgage" debt but it shows as revolving (what it actually is, of course).

    • @TheCloserUT
      @TheCloserUT 2 роки тому +5

      This is interesting to hear because in my line of work I see Helocs on credit reports listed as Mortgages all the time.

    • @ilovebrocoli6068
      @ilovebrocoli6068 2 роки тому +1

      What about a home equity loan?

    • @ninavorobeva4927
      @ninavorobeva4927 2 роки тому +4

      Actually, I found out that heloc is not considered in the summation of revolving credit, according to Credit Karma. I do have my CCs maxed out, totaling 60K. That is the true reason of my score plummet.

    • @troyabercrombie7869
      @troyabercrombie7869 2 роки тому +7

      You have 60K of maxed CC and borrowed more? Yikes.

    • @ninavorobeva4927
      @ninavorobeva4927 2 роки тому +2

      @@troyabercrombie7869 you obviously not using this comment section in a smart way

  • @kstessel1
    @kstessel1 Рік тому +2

    Where can you find current HELOC interest rates? Thanks for the great video. 👍🏻

  • @livingthedream8404
    @livingthedream8404 2 роки тому +3

    Great video, thank you for your educational video, I’m about to use HELOC and I’ve been very anxious, this video helps a lot

  • @danielmaldonado6388
    @danielmaldonado6388 2 роки тому

    at 11:47 you refer about any type of refi? even cash out refi?? casue im thinking on doing heloc on my property but its my first time and im thinking buying a rental proterty so ican strat growing my portfolio ...

  • @sunjin3948
    @sunjin3948 3 роки тому +3

    I have a question wondering if anyone who's watching this have some advice and answers to give me. I have a property which gone up value by 50k and my tenant have been paying my mortgage approximately 3 years and now giving me a problem so I am using my leasing office to try to kick him out. Is this good time to sell the house or keep it? I know housing price is still somewhat going up but will go down eventually so not sure if it is good time to sell the property right now or not? Does anybody have advice what I should do?

    • @src4409
      @src4409 3 роки тому

      Depends on what you paid for the house. For example: I bought one of my houses at the peak of the market in 06. My house was never worth what I paid after 08, until this past year. I finally sold it. However, you also have capital gains tax to consider. I didn't have to pay capital gains tax because I did a large renovation on it before I sold it which made my profits under the amount set for paying this tax. You'll have to look at the laws. If you're wanting to buy another house with your profits.. You'll end up in the same situation I was in back in 08 and for the last 12 years or so. Houses are not a bad investment. They will be a steady currency when the dollar is worthless. Ultimately, I decided on selling that house because I moved many states away and managing it long distance was too difficult.

  • @richardmcmillan3987
    @richardmcmillan3987 2 роки тому

    What about furnishing your home?

  • @aaronmcfadden9253
    @aaronmcfadden9253 2 роки тому +4

    Fifth third bank had a crazy promotion. 1.2% interest rate for the first year of the heloc. We missed it by a day. I believe you can lock your interest rate in. I could be wrong.

    • @albajessicalove
      @albajessicalove Рік тому +1

      Maria Brisbane helped me secure HELOC with 650 credit score

    • @albajessicalove
      @albajessicalove Рік тому +1

      check her out on Google or check her website

  • @desertrider325
    @desertrider325 5 місяців тому

    Should I use lending tree?

  • @user-ru2hf1sg4e
    @user-ru2hf1sg4e 3 роки тому +3

    Cant you just do a cash out refi if you cant pay it back quickly and just have a 30 year fixed rate?

    • @Kymv8382
      @Kymv8382 3 роки тому

      Exactly. Plus you can only borrow up to 80% ltv on most cash out refi’s so you’re still protecting your equity AND you aren’t taking out a second lien on your property

    • @user-ru2hf1sg4e
      @user-ru2hf1sg4e 3 роки тому

      @@Kymv8382 if you take out a heloc and decide you want to keep the equity in your investment, cant you then take out a cash out refi and off the heloc and turn it into a 30 year fixed rate?

    • @Kymv8382
      @Kymv8382 3 роки тому

      @@user-ru2hf1sg4e Theoretically yes, but it makes it more difficult. Remember, a heloc is a second lien on your property. Also, remember, your LTV (loan to value may be affected to the point where you can’t even pay off the heloc because you must maintain at least 80% equity on a cash out refi. With heloc most people’s “CLTV” , combined loan to value, is that above 80% and they’re screwed.
      A lady I just dealt with was in a similar position. She took a heloc for renovations on her primary and was literally banking on the fact that her home would appraise at a value high enough to pay the heloc off, guess what, with the market we’re in and her variable rate on her heloc, she’s scared to the death to lose her houseb

    • @user-ru2hf1sg4e
      @user-ru2hf1sg4e 3 роки тому

      @@Kymv8382 ya that was something i made sure of. My home is paid off and it was appraised at 700k and my heloc is only 300k. But i was able to buy 11 units with it that cash flow at 7k a month after expenses. We are renting put my primary home for 3k and if i cash out refi i can still get 250k and the mortgage will be paid by my renter and i will have another 250k to invest with.

  • @juanabarajas76
    @juanabarajas76 3 місяці тому

    Can Interest be paid down like home loans?

  • @anthiafisher2447
    @anthiafisher2447 Рік тому

    If you refi can you use the funds for any property even overseas?

  • @workendog
    @workendog 3 роки тому +3

    Mine is locked in. 6% I think??? Through credit union...

    • @mr2fas2
      @mr2fas2 3 роки тому

      Yep mine is locked at 4.5 for 5 years

  • @saraiwalle6886
    @saraiwalle6886 2 роки тому

    Question can I get a Heloc with out refinancing my home ?

  • @tamikajennings4062
    @tamikajennings4062 2 роки тому +4

    I’ve been straddling the fence for 3 weeks on rather to get this HeLOC to upgrade my home. Thank you so much

  • @austinryder7265
    @austinryder7265 9 місяців тому

    What happens if the bank sells were you have your loans through and then you have to payoff all debts at once on 90 day notes?

  • @cassandrarhys
    @cassandrarhys 2 роки тому +6

    Great video, Chandler!!
    One option I’ve offered as a loan officer to my clients purchasing investment property is the no-income DSCR option. Pretty straight forward option for investors.

    • @dalawman4977
      @dalawman4977 Рік тому +2

      May I ask what it is? I'm new to all of it...

    • @mctxm9645
      @mctxm9645 Рік тому +1

      What is that?

    • @albajessicalove
      @albajessicalove Рік тому +1

      ​@@dalawman4977Maria Brisbane helped me secure HELOC with 650 credit score

    • @albajessicalove
      @albajessicalove Рік тому +1

      check her out on Google or check her website

  • @AZ23MJ
    @AZ23MJ 4 місяці тому

    What about home fixes, such as pipes that need replacement or ac unit that needs replacement? Heloc or refinance? I have a very good interest rate currently with my mortgage payments, wouldn’t a refi change that to current (much higher) interest rate?

  • @a2mfk190
    @a2mfk190 2 роки тому +3

    Great video! Would like an update where you talk about the current rate status with the Feds likely raising rates again 0.5-0.75 in July. But I like that your bottom line was to have an exit strategy, which is an important real estate rule as well....

    • @albajessicalove
      @albajessicalove Рік тому +1

      Maria Brisbane helped me secure HELOC with 650 credit score

    • @albajessicalove
      @albajessicalove Рік тому +1

      check her out on Google or check her website

  • @TEXASBOXINGG
    @TEXASBOXINGG 2 роки тому

    Would you let the bank do the appraisal or you get the appraisal done by a private or city personnel

  • @SnLProperties
    @SnLProperties 3 роки тому +3

    Chandler, what about if you use a heloc to buy a rental property, and the bank will allow you to roll the amount once used into a fixed rate?? And obviously the numbers work. Thoughts on this?

  • @jonnyboy4774
    @jonnyboy4774 2 роки тому

    How do you manage all those properties

  • @FabeAlvarado
    @FabeAlvarado 3 роки тому +14

    Awesome video!! Lots of good info. I'm about to try and get a HELOC in the property I live in I bought Subject to. I was debating refinancing but this video helped me understand the pros and cons better.

  • @eddiehuerta2883
    @eddiehuerta2883 2 роки тому

    Great video what up grades on a home you recommended

  • @JarredAlloway
    @JarredAlloway 2 роки тому +26

    Great video! I have a couple notes:
    - You can't technically draw from your HELOC "whenever" you want. There is typically a draw period; most common being 10 years (payments are typically 10 years interest only payments, 20 years principle + interest payments).
    - Also, make sure you shop around. It can be common to find a HELOC promotion for Prime minus a percentage (4.75 - 0.50 = 4.25).
    - You can refinance your property if you have a HELOC. A HELOC simply adds an additional (subordinate) lien to your property.
    - Sometimes you can lock in your rate on a HELOC. Look into this with your financial institution. FYI a locked (fixed) rate will typically be greater than the current variable rate. This can be used to hedge increasing rates.

    • @brahmmauer7927
      @brahmmauer7927 2 роки тому +4

      Fixed rate home loans are not HELOC’s. They are home equity loans.

    • @JarredAlloway
      @JarredAlloway 2 роки тому +2

      @@brahmmauer7927 correct, however, the remaining available credit (if there’s credit remaining) can still be used as a traditional HELOC.

    • @EadsB7002
      @EadsB7002 2 роки тому +1

      Are you penalized for pulling out the entire amount right away?
      I was planning a few projects I would need funds for up front. But planned on beginning repayment immediately as well.

    • @albajessicalove
      @albajessicalove Рік тому +1

      Maria Brisbane helped me secure HELOC with 720 credit score

    • @albajessicalove
      @albajessicalove Рік тому +1

      check her out on Google or check her website

  • @lydiamananquil8367
    @lydiamananquil8367 5 місяців тому

    Is this heloc avail to d US properties too ? Or just only here niw in Canada?

  • @JayCosta
    @JayCosta 3 роки тому +14

    Hey Chandler great video. I just recently got a HELOC on my house. I plan on using it for rental investment properties. Not for a down payment, I agree that could get a bit sketchy if you have no way to repay it. But more for short term bills like renovations, etc. I think it will work out great. I posted a video on how I got approved a month or 2 ago. I also posted a video on HELOC vs cash out refi. Keep the great content coming.

    • @Kronic1Chillz
      @Kronic1Chillz 2 роки тому +1

      Where you investing bro?

    • @JayCosta
      @JayCosta 2 роки тому +1

      @@Kronic1Chillz real estate here in NJ.

    • @Kronic1Chillz
      @Kronic1Chillz 2 роки тому +1

      @@JayCosta Nice man, do you help Canadian Investors, I am looking to invest in the United States market, much cheaper than where I am.

    • @mclilzenthepoet2331
      @mclilzenthepoet2331 2 роки тому

      would be bad if interest rates rose because of inflation this shit is a house of cards your gonna get f'ed bro

    • @luisdejesus3425
      @luisdejesus3425 2 роки тому +1

      Would I be able use mine on down payment on an investment property

  • @clemonscg
    @clemonscg Рік тому

    But my interest rate on my VA home loan is fixed, so my interest rate will not be fixed anymore if I get a heloc?

  • @luuksmfolwe2158
    @luuksmfolwe2158 29 днів тому

    Help me understand what do you mean t one will be paying interest on Heloc they wont be a monthly premium?

  • @nerianagonzalez9320
    @nerianagonzalez9320 2 роки тому +4

    Thanks for the detailed explanation. I think a line of credit is a better option for me.

    • @albajessicalove
      @albajessicalove Рік тому +1

      Maria Brisbane helped me secure HELOC with 650 credit score

    • @albajessicalove
      @albajessicalove Рік тому +1

      check her out on Google or check her website

  • @behamiltonsrful
    @behamiltonsrful 4 місяці тому

    What if I needed to do some work on the house? Does it make more sense to get a loan, or use a Heloc? Say, I needed a new HVAC, or wanted the inside of the house painted? Thanks in advance.

  • @GhanYt
    @GhanYt Рік тому +234

    Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make

    • @bahijarhafiri
      @bahijarhafiri Рік тому

      I've been in touch with a financial analyst ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.......

    • @bahijarhafiri
      @bahijarhafiri Рік тому +1

      I happen to know ROCH DUNGCA-SCHREIBER* . She has been my fin coach since 2018, no major losses has been recorded. Totally recommend her

  • @williamjohnson8146
    @williamjohnson8146 Рік тому

    So, is this a good idea to upgrade or make home repairs.

  • @ce9916
    @ce9916 2 роки тому +7

    The video starts at 1:19

  • @261Pro
    @261Pro Рік тому

    Good Sir .. what about someone like myself who has equity and needs to get out of high interest credit card debt? What is best tool to mitigate the high interest rates on credit cards? Thank you for your time

  • @Abhay_REtainment
    @Abhay_REtainment 3 роки тому +8

    This is video is perfectly timed for me ! And as always you did fantastic job in explaining it in simplest way

    • @albajessicalove
      @albajessicalove Рік тому +1

      Maria Brisbane helped me secure HELOC with 650 credit score

    • @albajessicalove
      @albajessicalove Рік тому +1

      check her out on Google or check her website

  • @tangyrichardson9562
    @tangyrichardson9562 2 роки тому

    Im interested. Could you help me with the heloc please.

  • @tadt.6262
    @tadt.6262 2 роки тому +9

    Enjoyed the video, I would have like more info on pros vs cons on using money for home repairs like a roof in my case. I’m thinking a HELOC will be best for me since I’ll also need money to redo the master bath in the next 5yrs.

    • @carolinenjoroge2297
      @carolinenjoroge2297 2 роки тому

      What’s wrong with the roof? Your insurance should cover a replacement roof if it’s leaking or in need of repairs

    • @The-last-son
      @The-last-son 2 роки тому

      @@carolinenjoroge2297 They only gave me 3000 but the actual cost is 5000. It is a crappy insurance company I was under. I've since changed companies. Im an example of getting screwed as they ignored me for a year and gave me the run around.

  • @virrajpatel8357
    @virrajpatel8357 2 роки тому

    is line of equity limited to only homes or other investment properties?

  • @pentleyholmes
    @pentleyholmes 3 роки тому +21

    Great video Chandler! Alot of great points here! Just a note here You may have missed.I just closed on a heloc and I'm going to use it to purchase a rental and it didn't cost me anything! The bank picked up the closing costs and I'm also able to lock the intrest rate 3 times during the life of the loan!
    Been watching your other videos to figure out how to get the best deal on this property I hope to acquire thanks for making this type of content! Like button smashed!

    • @SnLProperties
      @SnLProperties 3 роки тому +2

      If you don’t mind me asking what bank did you use for this heloc? I’m currently in the process of doing a heloc that’s why I ask

    • @LoganKohn
      @LoganKohn 3 роки тому +1

      @@SnLProperties Hi Scott, what bank are you using out of curiosity? Thank you!

    • @SnLProperties
      @SnLProperties 3 роки тому +3

      @@LoganKohn Pen Fed

    • @pentleyholmes
      @pentleyholmes 3 роки тому +2

      Pen fed! 💯

    • @jorgesalazar818
      @jorgesalazar818 2 роки тому +1

      @@SnLProperties i was just looking at a pended HELOC this morning. Very attractive conditions.

  • @kirbycollins3223
    @kirbycollins3223 2 роки тому

    I Wanted to Know? If you can Pay Extras to Lock in a Fixed Interest Rates?

  • @rjhall351
    @rjhall351 2 роки тому +6

    HELOC's are a good construction loan alternative, you don't have to ask "mother may I?" At every turn and you can be your own GC.

  • @horusproductions
    @horusproductions 3 місяці тому

    Supper helpful! I am a subscriber now.

  • @sweeteime
    @sweeteime 3 роки тому +3

    Can you take a HELOC to pay off another property mortgage?

    • @Ditronus.
      @Ditronus. 3 роки тому +1

      Yes. You can even pay off the mortgage of the home you took the heloc against.

  • @zeekflash6924
    @zeekflash6924 Рік тому

    Heloc can only be tapped from your primary residence?

  • @Swademedia
    @Swademedia 3 роки тому +5

    Great video! Thanks! Just recently learned of HELOCs and this was helpful.

  • @navyseabee0823
    @navyseabee0823 5 місяців тому

    What about buying land for your next property. Not a rental, did that and wasn’t fun or lucrative. Would a heloc work for buying land and then refinancing when the house is built?