We recently bought our first home for 150000 cash. It does need some repairs that I can most likely make on my own. A heloc seems very tempting to get the homes value to increase. I think we might have to live in a few years to avoid capital gains tax if we decide to sell and that would be ok with us. We may want to get another house down the road that we can use as a rental in the future. We liked your information, liked and subbed. Look forward to more content.
Informative video. I feel like something worth making a slight correction or clarification to... you said a couple of times that on a cash out refi, you'd have to start paying interest on that full $100k amount on the lump sum cash you accessed. Something that some people may not be considering is that you're paying interest on ALL of the full sum of the new loan. This is important because if someone had a $300k mortgage in 2020 at 3% and does a cash out refi today to access $100k, they're going to pay more like 7% on $400k. So yes, a heloc is going to have higher interest than a mortgage rate, but in the same instance someone would continue paying that 3% on the original $300k, and only be subject to that higher interest on the $100k. I feel like that kind of got glossed over when saying you're paying it on "the whole $100k".
True, good point. I will clarify better in the future. But you are absolutely correct. I was simply comparing the interest paid on the access to equity
Recast is the best product, it was change the monthly payment lower & lower & lower & lower as U did the lump sum. Finished my mortgage in 7.9 years with recast.
You need to clarify or calculate the interest rates for each. Bc it’s like comparing apples to oranges in that aspect. Simple daily interest for Heloc and amortized mortgage interest. I’ll take simple any day and at any rate. Good video besides that
Thanks much appreciated. Check this video out that I made on how to use heloc for investment property. I cover down payments etc. ua-cam.com/video/tf0lGMvH4PA/v-deo.html
Hey Jay, I'm a new subscriber. I have a lot of equity in my rental property and wanted to see if there's a way to tap into the equity without a complete refi? I want to consolidate some debt and finish a project at the house. Any guidance is greatly appreciated.
Hey Dan Appreciate the subscribe welcome aboard. Check out the video I actually JUST posted on how to get a HELOC on investment properties. Many Lenders quit these programs, including the famous Pen Fed Credit Union HELOC. ua-cam.com/video/hr4b7h8glTU/v-deo.html
You said you can’t use equity from an investment property to buy another? All of the videos I watched say you can. Kris krohn talks about that all the time in his videos.
As far as my research goes, these Helocs are usually only for primary residence. I believe it is possible to find a lender to give a HELOC on investment property, but not as common. As far as using it to buy another property, you definitely can. The only you may come across is if you plan to use it as a down payment only, you will need to show you have the liquid funds from somewhere else to the lender in order to be approved. But obviously every lender and program is different. Thanks for taking the time to watch.
Thank you for the info. I currently have almost $200,000 worth of equity in my home. I don't ever plan on selling (I want to pass along to my daughter) but I would like to do some remodeling (both interior and exterior) and pay off some very small bills. Also my mortgage is not fixed so my mortgage goes up yearly which I hate. Would a Cash Refi be more fitting?
What is your current mortgage rate? Sounds like you are in an ARM mortgage. So a lot of what you do depends on what the terms are. Thanks for watching!
@@JayCosta absolutely! Thanks for your response. I'm currently at a interest rate of 4.25%. My mortgage has been going up yearly since the loan originated 7/2014.
Hi my house is value 500000 I have 130000 remaining on my mortgage to pay off My rate is 2.83,4 year fix/close Current terms 4 year fix/close with 20 months left/1year 7 months Maturity date October 2023 Maturity 22 years and 6 months Mortgage payments $654.61 monthly My credit score over 850 I have $370000 in equity in my property I want to take out 130000 of my equity to pay off my mortgage Then worry about paying back the heloc at a fix rate or low variable rate Is that a better,lower way to pay than what I'm paying now?
There are some videos out on "velocity banking" and how to pay off your mortgage with a heloc. I will make one of my own soon. Stay tuned for that and thanks for watching!
How do you qualify for your rental property home equity with good credit and low paying job. Renters cover rent now and would cover with refinance cash out?
Bro you are wrong about the interest part of the cash out refinance….cash out refinance interest rate on the new loan is based off the nations interest rate….right now my cash out refinance interest rate will be higher than the my home loan now so it depends on the timing of this whole thing
@@jeremewright3329 Will you be staying there for 7-10 years from now? If so, I would do a cash out refi. I wouldnt depends on refinancing to a lower rate any time soon.
That's a question for your mortgage ekender. Usually you will need to show enough reserves in your bank account. A Heloc does not apply for this. Thanks for watching!
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We recently bought our first home for 150000 cash. It does need some repairs that I can most likely make on my own. A heloc seems very tempting to get the homes value to increase. I think we might have to live in a few years to avoid capital gains tax if we decide to sell and that would be ok with us. We may want to get another house down the road that we can use as a rental in the future. We liked your information, liked and subbed. Look forward to more content.
Informative video. I feel like something worth making a slight correction or clarification to... you said a couple of times that on a cash out refi, you'd have to start paying interest on that full $100k amount on the lump sum cash you accessed. Something that some people may not be considering is that you're paying interest on ALL of the full sum of the new loan. This is important because if someone had a $300k mortgage in 2020 at 3% and does a cash out refi today to access $100k, they're going to pay more like 7% on $400k. So yes, a heloc is going to have higher interest than a mortgage rate, but in the same instance someone would continue paying that 3% on the original $300k, and only be subject to that higher interest on the $100k. I feel like that kind of got glossed over when saying you're paying it on "the whole $100k".
True, good point. I will clarify better in the future. But you are absolutely correct. I was simply comparing the interest paid on the access to equity
Recast is the best product, it was change the monthly payment lower & lower & lower & lower as U did the lump sum. Finished my mortgage in 7.9 years with recast.
Have never heard of it. Can you send me info? Thanks for watching!
Fantastic video, very well done and made very easy to understand. Just subscribed. Thank you
Thank for the kind words and thank you for watching! Any other topics that you would like to be covered, let me know.
You need to clarify or calculate the interest rates for each. Bc it’s like comparing apples to oranges in that aspect. Simple daily interest for Heloc and amortized mortgage interest. I’ll take simple any day and at any rate. Good video besides that
Great video. Simple and informative
Glad you enjoyed thanks for watching!
That was so helpful. Thank you! 😊
Glad it was helpful!
Great content clearly explained & extremely informative.
Can I use a HELOC to fund down payment for investment property??
Thanks much appreciated. Check this video out that I made on how to use heloc for investment property. I cover down payments etc. ua-cam.com/video/tf0lGMvH4PA/v-deo.html
thank you sir. i got an idea now. i appreciate it
Happy to help
glad i found this channel just subscribed!
Thanks for watching. Appreciate the sub!
Thanks Jay! New subscriber here.
You're welcome Mike. Thanks for the sub!
Absolutely agree
Thanks for watching
I own a property I bought for 40k and it has a very nice house that needs about 60 k of Reno. What’s best loan u would say? Renofi heloc?
What are your plans? To sell it? or to keep it? Refin if you are keeping it. HELOC if you are selling. Thankf ro watching and let us know how it goes
Excellent Breakdown, I'm trying to decide which one is best for me as we speak, Thanks
Let me know if you have any questions and thanks for watching!
How often do rates on HELOCs change? How high/low have you seen them go recently?
they can change once per month, but dont officially change unless the Fed changed fed funds rate.
Nicely explained
thank you and thanks for watching. Let me know if you want any other topics covered.
Thank bruh.. very informative
You're welcome thanks for watching
Man. Your content is fuckin great.
Thanks I appreciate you watching!
Hey Jay, I'm a new subscriber. I have a lot of equity in my rental property and wanted to see if there's a way to tap into the equity without a complete refi? I want to consolidate some debt and finish a project at the house. Any guidance is greatly appreciated.
Hey Dan Appreciate the subscribe welcome aboard. Check out the video I actually JUST posted on how to get a HELOC on investment properties. Many Lenders quit these programs, including the famous Pen Fed Credit Union HELOC. ua-cam.com/video/hr4b7h8glTU/v-deo.html
@@JayCosta thank you so much Jay I appreciate it!
You said you can’t use equity from an investment property to buy another? All of the videos I watched say you can. Kris krohn talks about that all the time in his videos.
As far as my research goes, these Helocs are usually only for primary residence. I believe it is possible to find a lender to give a HELOC on investment property, but not as common. As far as using it to buy another property, you definitely can. The only you may come across is if you plan to use it as a down payment only, you will need to show you have the liquid funds from somewhere else to the lender in order to be approved. But obviously every lender and program is different. Thanks for taking the time to watch.
@@JayCosta do more research. You can get a heloc against your investment property brah
Thank you for the info. I currently have almost $200,000 worth of equity in my home. I don't ever plan on selling (I want to pass along to my daughter) but I would like to do some remodeling (both interior and exterior) and pay off some very small bills. Also my mortgage is not fixed so my mortgage goes up yearly which I hate. Would a Cash Refi be more fitting?
What is your current mortgage rate? Sounds like you are in an ARM mortgage. So a lot of what you do depends on what the terms are. Thanks for watching!
@@JayCosta absolutely! Thanks for your response. I'm currently at a interest rate of 4.25%. My mortgage has been going up yearly since the loan originated 7/2014.
@@JayCosta property taxes are included in my monthly payments.
Dropping knowledge 💣 💣 💣
Yes sir thbaks for watching brother!
Hi my house is value 500000
I have 130000 remaining on my mortgage to pay off
My rate is 2.83,4 year fix/close
Current terms 4 year fix/close with 20 months left/1year 7 months
Maturity date October 2023
Maturity 22 years and 6 months
Mortgage payments $654.61 monthly
My credit score over 850
I have $370000 in equity in my property
I want to take out 130000 of my equity to pay off my mortgage
Then worry about paying back the heloc at a fix rate or low variable rate
Is that a better,lower way to pay than what I'm paying now?
There are some videos out on "velocity banking" and how to pay off your mortgage with a heloc. I will make one of my own soon. Stay tuned for that and thanks for watching!
Thank you
Thank you for watching
How do you qualify for your rental property home equity with good credit and low paying job. Renters cover rent now and would cover with refinance cash out?
Lender should use a certain percentage eof rental income in order to qualify for mortgage. Thanks for watching
Bro you are wrong about the interest part of the cash out refinance….cash out refinance interest rate on the new loan is based off the nations interest rate….right now my cash out refinance interest rate will be higher than the my home loan now so it depends on the timing of this whole thing
Different countries will be entirely different situations for sure. Thanks for watching!
A 45k fixed rate at 8% heloc for 30 yrs is a good idea to pay off all the debt with have from renovation we did? Is it safe
Where is the $45k debt at currently and at what rate? Thanks for watching!
@@JayCosta hello it’s 45k at 7.1 % fixed for 30 yrs of course it will be paid off way before the 30 yrs
Hey bro what if you have a property and it’s paid off and you want do a full Reno. Which is best cash out or heloc?
Hey Jereme, is it your primary home or an investment property? How much are you looking to spend on renovations?
@@JayCosta yes primary. No more than 300k
@@jeremewright3329 Will you be staying there for 7-10 years from now? If so, I would do a cash out refi. I wouldnt depends on refinancing to a lower rate any time soon.
@@JayCosta I plan on stay at least 5-7 years
Do you need great credit for any off them
Depends on the lender but you will at least need good credit. Thanks for watching!
Thanks
Is your IG down?
@realjaycosta
Can a heloc be used for down payment on another primary property. The current house will be an investment property once the new primary is obtained?
That's a question for your mortgage ekender. Usually you will need to show enough reserves in your bank account. A Heloc does not apply for this. Thanks for watching!