The Benefits of a HELOC - Why You Should Get One NOW

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  • Опубліковано 26 сер 2024

КОМЕНТАРІ • 52

  • @yonihenriquez9874
    @yonihenriquez9874 6 місяців тому +2

    New subscriber here!! Just in time! I'm trying to get all information about heloc before apply, and all your videos are excellent!! Thanks for all your videos.

    • @JayCosta
      @JayCosta  6 місяців тому

      Youre welcome and thanks for watching! Let me know if you need any further help.

  • @CijiYassin
    @CijiYassin 7 місяців тому +1

    Thank you so much for the info! I would absolutely love to see a video where you walk through how you used your HELOC for new construction from start to finish.

    • @JayCosta
      @JayCosta  7 місяців тому

      OK, I will do that soon! We just put up sheetrock so now there will be something to walk through. Thanks for watching!

  • @dq7143
    @dq7143 2 місяці тому +1

    Great insights!

    • @JayCosta
      @JayCosta  2 місяці тому

      Thanks for watching and the kind words

    • @JayCosta
      @JayCosta  2 місяці тому

      Thanks for watching and the kind words!

  • @FurryHippoFinance
    @FurryHippoFinance 7 місяців тому +6

    From a financial counseling side, the HELOC turns your asset (home) into a liability (more debt) most people treat it like a HUGE credit card that they can use for overspending. Just budget properly, spend less then you earn, and you do not need to borrow money. Even a HELOC today is at 8.5% which is better than CC rates but still not worth it.

    • @JayCosta
      @JayCosta  7 місяців тому +5

      I agree, it is only worth it if you plan to use it to invest. Should never be used for daily living expenses. Thanks for watching!

    • @Funtimes900
      @Funtimes900 6 місяців тому +1

      Am planning to use my HELOC to put towards a cash flowing ($400 profits monthly ) duplex , any tips ?

  • @elrola23631
    @elrola23631 6 місяців тому +1

    Hi Jay new subscriber here.
    Just got approved for heloc, want to build duplex but not sure if to sell or refinance, repay heloc and do it over again. Keep the videos coming bro, great content.

    • @JayCosta
      @JayCosta  6 місяців тому

      Thanks for tuning in. Sell the duplex or refi and rent it out? Depends on what your goals are but long term buy and hold is always a great idea.

  • @jeroldstokes6065
    @jeroldstokes6065 7 місяців тому

    THANKS. Just what I needed to watch. My wife and I got a 400k HELOC from our 780k primary home which we are still paying a mortgage for. I want to only use 200k for this new duplex down payment. I realized that the secret to making millions is making better investments and staying out of debt.
    I'm grateful to GOD for the internet space, we were able to join the credit repair program, we payed up our debt and now we are back to being the administrators of our farming business and our own properties, as well as small pensions. I am almost 56, my wife is 52. We have started saving for retirement from the farm and maybe live off rental income, I would really appreciate it if you would do a video on how to earn using Airbnb and retire comfortably.

    • @jeroldstokes6065
      @jeroldstokes6065 7 місяців тому

      "Laura Gilbert CFA " is the licensed fiduciary I use. She lead me to join the program, Just research the name you'd find necessary details to work with a correspondence to set up an appointment.

  • @alexk4092
    @alexk4092 7 місяців тому +2

    Question that really bother me is. For exmaple im in draw period. And i pay interest only $500. If i start paying of my principal while in draw period will interest only payment go down because principal goes down slowly or interest only payment remains the same till owed balanced paid off?

    • @JayCosta
      @JayCosta  7 місяців тому +2

      Interest only payment goes down since it is based on your "Average Daily Balance" each month. Hope that helps!

  • @ceh6096
    @ceh6096 5 місяців тому +1

    Great information, im considering HELOC to add an ADU on my current property and use as Rental, in your opinion is this a good idea and if so, what are the risk if the goal is to have HELOC paid back with in 5-6 years

    • @JayCosta
      @JayCosta  5 місяців тому

      I think you are better off with a fixed rate loan for that period of time. Like a home equity loan.

    • @ceh6096
      @ceh6096 5 місяців тому

      jay is that option the same process with pulling out a specific amount with a fixed % rate ? or is the process diffrent @@JayCosta

  • @darellroasa3235
    @darellroasa3235 7 місяців тому +2

    Hi, thank you for the video. Im planning to have ADU to my backyard. Would you recommend to use heloc or home equity loan. I bought the house back in 2012 @260k 30yr. fix mortgage at 2.75% and now the house is 736k.

    • @JayCosta
      @JayCosta  7 місяців тому +2

      I would do something with a fixed rate, aka Home Equity Loan. As long as the rental income covers it. Thanks for watching!

    • @darellroasa3235
      @darellroasa3235 7 місяців тому +2

      @@JayCosta thank you for your response.

  • @octavioflores4642
    @octavioflores4642 5 місяців тому +1

    Question for you it’s just some feedback. Using a HELOC to open up a business? What’s your feedback on that? Thanks.

    • @JayCosta
      @JayCosta  5 місяців тому

      I wouldnt do it. Get a business loan or find investors.

  • @PrakashForU
    @PrakashForU 7 місяців тому +1

    Can you differentiate - why NOW (Jan2024) vs wait longer vs already too late?

    • @JayCosta
      @JayCosta  7 місяців тому

      You can get a HELOC any time, but terms may change in the future. Thanks for watching!

  • @Brendig13
    @Brendig13 7 місяців тому +1

    I want to use our HELOC to invest in a rental property. I know you don’t recommend it but if I don’t have the money elsewhere how are supposed to invest? We have a really low interest rate on our home and I don’t think is a good idea to do a cash out refi.

    • @JayCosta
      @JayCosta  7 місяців тому +1

      Save up for the down payment and use a DSCR loan or investment mortgage loan instead. Using your home equity as a down payment can result in losing your house AND the investment property in a bad market. But if you are OK with that risk, so be it. Thanks for watching!

  • @nathanaelmccasland2349
    @nathanaelmccasland2349 7 місяців тому +1

    I owe 18k (valued at 200k) on my personal home & 240k on a 4 unit investment (valued at 400k) & No proof of income. Heloc or cashout refi for immediate cash for remodel on both? Under 1 year term. I have almost 100k in other stock and btc investments but don't want to sel...

    • @JayCosta
      @JayCosta  7 місяців тому +1

      Why do you need to remodel? If you just want to renovate your home because its old and you want to enjoy it, I would either sell the stocks to pay cash, or do a full cash out refinance, as long as you have income that can qualify for it. I would not use HELOC or Home Equity Loan for your personal home. For investment property, I would use cash out refi unless you are paying a very low rate and dont want to lose it. If thats the case, use a Home Equity loan with fixed rate, as long as rental income covers the payments. Hope that helps.

  • @joeconran7922
    @joeconran7922 6 місяців тому +1

    they can make you pay it all back before the repayment period?

    • @JayCosta
      @JayCosta  6 місяців тому

      Depending on the lender, Yes. Thanks for watching!

  • @SelenaT
    @SelenaT 4 місяці тому

    Thank you.

    • @JayCosta
      @JayCosta  2 місяці тому

      Thanks for watching!

  • @lionelwilliams7460
    @lionelwilliams7460 7 місяців тому +1

    What about the Airbnb sort team method? Can that work with an HELOC??

    • @JayCosta
      @JayCosta  7 місяців тому

      You are still owning the property long term, so I would not use a HELOC on an airbnb property. Thanks for watching!

  • @Willy-ct5bg
    @Willy-ct5bg 7 місяців тому +1

    Could you recommend lenders for HELOC

    • @JayCosta
      @JayCosta  7 місяців тому +1

      Yes I will be coming out with a new lenders video shortly! thanks for watching!

  • @journeytobetterjes_erazo87
    @journeytobetterjes_erazo87 7 місяців тому

    Would love to see a walk through

    • @JayCosta
      @JayCosta  7 місяців тому

      Will Do! Thanks for tuning in

  • @Josh-ii1eq
    @Josh-ii1eq 5 місяців тому

    What if you had a paid off investment property worth 300k. And you pull 150k on the heloc to buy a couple properties and pay it back

    • @Josh-ii1eq
      @Josh-ii1eq 5 місяців тому

      Would prob only use roughly 75k or so of it for down payments, renos etc

    • @JayCosta
      @JayCosta  4 місяці тому

      As long as you cash out refi at the end, good to go.

  • @cryptojuan5897
    @cryptojuan5897 7 місяців тому

    Can’t get Heloc credit is 600

    • @JayCosta
      @JayCosta  7 місяців тому

      Work to get it up to about 615 or 620 and you should be fine, but it depends on the lender. Thanks for watching!

  • @davidwynter8427
    @davidwynter8427 7 місяців тому

    Hey, what are the best local banks in North Jersey you recommend using for a HELOC

    • @JayCosta
      @JayCosta  7 місяців тому

      I would start with local and regional lenders. I have used M&T and have been happy. Thanks for watching!

  • @MrTexaz101
    @MrTexaz101 6 місяців тому +1

    Would you use a HELOC to pay off debt?

    • @JayCosta
      @JayCosta  6 місяців тому

      Probably not, because you will just get yourself back into debt when the credit card balance is transferred. Thanks for watching!

  • @MH-hc7xq
    @MH-hc7xq 7 місяців тому +1

    DO NOT get this scrammy scam! Get it and tell me about the fees as they rack up.

    • @JayCosta
      @JayCosta  7 місяців тому

      Interest, maybe. Fees? Most likely, Not. Thanks for watching.