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HI & THANNKS for video ???? better if you did example o maybe showed a 10k line o credit AND showing amount monthly payments & how long takes to pay it off AND did you have to to refinance the original home loan
I feel stuck. You're right my balance have not moved. I'm currently looking for PT job so I can pay more on my principal. I've always have paid extra toward my mtge principal, but I never have enough to pay extra on my HELOC. I've played with the idea of paying the extra that I put on my mtge and switch and put it on the HELOC. What do you suggest?
If you pay some principal and the interest on that 50K, say you pay it 25K down the next month, then the following month you would only pay interest on the remaining 25K, correct? Thank you by the way. This is so difficult to get an answer or information on.
own an investment home since 2016. in 2022 I bought a private property with my ex! Now we no longer together I moved out. Since I don’t have a place to live now would I be qualified to do that heloc on the investment property since the value is 1M and I owed 420,000? My credit score is 580😣 I wanted to buy to another investment property I would live in one unit and rent out the rest of the unit for now. What do you think?? Would I be qualified? Or I must wait until my ex sale house we bought together??
Today, March 2024, I have an offer for a HELOC of $200k, 10 years withdrawl/30 years repayment period, with prime - 1,01 (APR of 7,49%), but the monthly payment is Interest + principal (not interest only). What does it mean?, would it be $1,248.33 + an additional payment for the principal? or the monthly payment of $1,248.33 is split between interest and principal. The Credit union is Third Federal. Thank you for your comments!
Draw period should be interest only. Make sure you are understanding what they are offering to you. Hard for me to comment without seeing it. Feel free to email me at jay@realjaycosta.com
so i am at the end of my HELOC loan process and should be closing soon, I have some personal bills that are pretty high including a tax bill that by me doing a HELOC will save me about 2k per month. but i am a little scared of the rate going up, and if it goes to high that will not be good but right now its saving me tremendously on monthly payments
what interest rate is the tax bill? I assume other debt is credit card? sounds like it is still better to consolidate into a heloc to make it easier to pay off. Thanks for watching
@@JayCosta man the daily interest on IRS taxes is ridiculous, yes i have a few high interest credit cards, and a high interest car not that i want to pay off.
I dont see any reason why using a HELOC to consolidate that debt at a lower rate would be a bad idea. As long as you are diligent about paying it off as soon as possible instead of the minimum interest only payment.
I just received my HELOC for 100K, now I'm afraid to use it (don't judge me, lol). I'm second guessing it now because I've watched too many videos. I think I need help making a payment plan. I only need about 50K of it. What do you suggest?
@@JayCosta It's for debt. I'm trying to follow velocity banking and I'm not sure I'm on the right track. I'm in Northern NJ as well, and my rate is a variable one.
Jay, I'm confused. Once you are approved. Is the HELOC like a credit card where you only pay interest on what you spend and the rest sits there until you use it?
So what happens if you always just pay the minimum payment (interest only)? I keep hearing interest only for 10years. But happens after that? No one seems to go into this very important detail
Maybe I will make video explaining this further, but it then turns into a 20 year loan where you pay principal and interest. Further details would depend on each lender. Thanks for watching!
So every heloc loan so far have that 10yr interest only payment? But what if you pay over the minimum? Will all that go to interest or will whatever you pay on top goes to principal in that 10yr (of interest only)?
What does the amortization schedule of a HELOC look like after 10 years of interest only payment. Will it look similar to a mortgage amortization schedule?
Depends on the lender. But it turns into what they call a "repayment period" Probably not amortized exactly like a mortgage. Just a combo of principal and interest. Thanks for watching.
Still so confused. :( I don't understand why people would use heloc for velocity banking. If you had bills that you can pay through your checking account with no interest, why would you put your bills on your heloc where interest will be added till you pay it off?
I applied for a Figure HELOC and was approved for $345,000. The way they do it is fund the entire amount. I don't want the entire amount. I am guessing this is so they can charge interest on the full amount. They allow you to send back what you do not need. If I want to send all but $10.000 and keep the remaining amount as credit balance available to me how much interest would I pay for that first month? The interest rate is 8.0%. I am trying to see if I should be looking for somewhere that does not send you the entire amount up front.
That is interesting that you have to send back what you do not use. I would ask the lender, but if I had to guess, the interest will be calculated based on the average daily balance. So if it is a high balance for only a couple days it probably wont be much. Thanks for watching!
@@JayCosta You don't have to send back what you don't use. I wanted a line of credit not a loan so I could draw on it as I needed. Another thing I learned was the more they send you the more they charge for the origination fee since it is a percentage of the amount borrowed. In my case it would have cost me over $16,000 up front just to get the line of credit. If I sent the entire amount back to pay down the balance I would still owe them $16,000. I did not end up taking the line of credit. Over the life of the line of credit I would have paid over a million dollars. It is things like this that keep people poor.
Let's say I was approved for $30k HELOC loan with a 10 year draw period. I immediately withdraw $10k the next day. Do I need to pay interest for the whole 10 years??
Idk I'm feeling a little scepticle about this HELOC. So If I request 20k and I take out 10k for a project and the interest is lets say 9% my first monthly is $900 dollars!?
@@JayCosta I'm really confused on this too. I applied for a HELOC and the rate today is going to be 9%. When I calculate 9% on 25,000 it says the amount is 2,250.00. Do I take the 2.250.00 and divide that by 12? Thank you.
@@JayCostaI own an investment home since 2016. in 2022 I bought a private property with my ex! Now we no longer together I moved out. Since I don’t have a place to live now would I be qualified to do that heloc on the investment property since the value is 1M and I owed 420,000? My credit score is 580😣 I wanted to buy to another investment property I would live in one unit and rent out the rest of the unit for now. What do you think?? Would I be qualified? Or I must wait until my ex sale house we bought together??
How much of the interest is used for tax write off? Is it dollar for dollar? Or less. Say I pay 6k in interest in 2023 does the drop my taxes by 6k or less?
Hey Jay thanks again for all the great input and content! I just applied yesterday for a HELOC on my investment property whit TD bank. Any ideas what I might expect in order to get approved? Any help is greatly appreciated
Hey Dan thanks for tuning in. They should have pulled your credit by now. Your credit and income are the biggest factors. Check out my first HELOC video here: ua-cam.com/video/0qiNuwSste0/v-deo.html&t Caution, the lighting and audio stink, but it has the most views of any video Ive ever posted.
@@JayCosta you're the best! They did pull my credit and the rep said everything looks good so I'm keeping my fingers crossed. I'm gonna check that video out now! Thanks again!
I used $150,000 of my $170,000 to purchase a rental property now I'm stuck bc of interest rates. I need to pay down mortgage principal to refinance out at a higher rate in the future.
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DO YOU KNOW HOW HARD IT WAS TO FIND THIS INFORMATION!?!?!?
Thank you so much!!!
You're welcome. Thanks for watching!
Its till a great way to access cash for renovations, paying down cc and pay off car.
As long as you have a plan to pay it off. Thanks for watching!
Thanks bro This what I was looking for
Youre welcome, Thanks for watching!
Thanks for watching!
HI & THANNKS for video ???? better if you did example o maybe showed a 10k line o credit AND showing amount monthly payments & how long takes to pay it off AND did you have to to refinance the original home loan
i will do this in the next one. thanks for the feedback!
Very well explained.
Thanks for watching!
I feel stuck. You're right my balance have not moved. I'm currently looking for PT job so I can pay more on my principal. I've always have paid extra toward my mtge principal, but I never have enough to pay extra on my HELOC. I've played with the idea of paying the extra that I put on my mtge and switch and put it on the HELOC. What do you suggest?
If you pay some principal and the interest on that 50K, say you pay it 25K down the next month, then the following month you would only pay interest on the remaining 25K, correct? Thank you by the way. This is so difficult to get an answer or information on.
Once the repayment period starts are you only paying principal since you just paid interest for 10 years?
Answering Your Questions Lice at 1:30! ua-cam.com/users/liveYO6_PFOEv8M?si=qYNrll9ZrJy5qkCn
I already have a heloc. Can I make multiple payments over the month . Let’s say like weekly payments ?
Yes, you certainly can. Thanks for watching!
Finally explained
Thanks for watching!
own an investment home since 2016. in 2022 I bought a private property with my ex! Now we no longer together I moved out. Since I don’t have a place to live now would I be qualified to do that heloc on the investment property since the value is 1M and I owed 420,000? My credit score is 580😣 I wanted to buy to another investment property I would live in one unit and rent out the rest of the unit for now. What do you think?? Would I be qualified? Or I must wait until my ex sale house we bought together??
I think you need a divorce attorney, not a youtube guy. Investment property HELOCs are getting harder to find in today's market. Thanks for watching!
I smashed the liked button now I have a broken screen.
Today, March 2024, I have an offer for a HELOC of $200k, 10 years withdrawl/30 years repayment period, with prime - 1,01 (APR of 7,49%), but the monthly payment is Interest + principal (not interest only). What does it mean?, would it be $1,248.33 + an additional payment for the principal? or the monthly payment of $1,248.33 is split between interest and principal. The Credit union is Third Federal. Thank you for your comments!
Draw period should be interest only. Make sure you are understanding what they are offering to you. Hard for me to comment without seeing it. Feel free to email me at jay@realjaycosta.com
so i am at the end of my HELOC loan process and should be closing soon, I have some personal bills that are pretty high including a tax bill that by me doing a HELOC will save me about 2k per month. but i am a little scared of the rate going up, and if it goes to high that will not be good but right now its saving me tremendously on monthly payments
what interest rate is the tax bill? I assume other debt is credit card? sounds like it is still better to consolidate into a heloc to make it easier to pay off. Thanks for watching
@@JayCosta man the daily interest on IRS taxes is ridiculous, yes i have a few high interest credit cards, and a high interest car not that i want to pay off.
I dont see any reason why using a HELOC to consolidate that debt at a lower rate would be a bad idea. As long as you are diligent about paying it off as soon as possible instead of the minimum interest only payment.
I just received my HELOC for 100K, now I'm afraid to use it (don't judge me, lol). I'm second guessing it now because I've watched too many videos. I think I need help making a payment plan. I only need about 50K of it. What do you suggest?
Whats the $50k for? You dont have to use it!
@@JayCosta It's for debt. I'm trying to follow velocity banking and I'm not sure I'm on the right track. I'm in Northern NJ as well, and my rate is a variable one.
Jay, I'm confused. Once you are approved. Is the HELOC like a credit card where you only pay interest on what you spend and the rest sits there until you use it?
So what happens if you always just pay the minimum payment (interest only)? I keep hearing interest only for 10years. But happens after that? No one seems to go into this very important detail
Maybe I will make video explaining this further, but it then turns into a 20 year loan where you pay principal and interest. Further details would depend on each lender. Thanks for watching!
bc they dont want u to know want u to stay blindfolded so they can make $$$$$ not u
So every heloc loan so far have that 10yr interest only payment? But what if you pay over the minimum? Will all that go to interest or will whatever you pay on top goes to principal in that 10yr (of interest only)?
It would go to the principal! Thanks for watching
Planning to use HELOC for purchase and flipping properties.
We take interest rate not APR to determine daily interest . APR can be lower than interest rate ( for heloc or Heloan ) .
True. Thanks for the info.
What does the amortization schedule of a HELOC look like after 10 years of interest only payment. Will it look similar to a mortgage amortization schedule?
Depends on the lender. But it turns into what they call a "repayment period" Probably not amortized exactly like a mortgage. Just a combo of principal and interest. Thanks for watching.
Should I wait for interest rates to go back down before I draw from my HELOC so I can save more in my payments?
Depends what you plan on using the funds for and where those funds are now. Thanks for watching
What about FIXED HELOC to pay off debt?
As long as you are disciplined in paying it off, could be a good idea. Thanks for watching!
Still so confused. :( I don't understand why people would use heloc for velocity banking. If you had bills that you can pay through your checking account with no interest, why would you put your bills on your heloc where interest will be added till you pay it off?
I applied for a Figure HELOC and was approved for $345,000. The way they do it is fund the entire amount. I don't want the entire amount. I am guessing this is so they can charge interest on the full amount. They allow you to send back what you do not need. If I want to send all but $10.000 and keep the remaining amount as credit balance available to me how much interest would I pay for that first month? The interest rate is 8.0%. I am trying to see if I should be looking for somewhere that does not send you the entire amount up front.
That is interesting that you have to send back what you do not use. I would ask the lender, but if I had to guess, the interest will be calculated based on the average daily balance. So if it is a high balance for only a couple days it probably wont be much. Thanks for watching!
@@JayCosta You don't have to send back what you don't use. I wanted a line of credit not a loan so I could draw on it as I needed. Another thing I learned was the more they send you the more they charge for the origination fee since it is a percentage of the amount borrowed. In my case it would have cost me over $16,000 up front just to get the line of credit. If I sent the entire amount back to pay down the balance I would still owe them $16,000. I did not end up taking the line of credit. Over the life of the line of credit I would have paid over a million dollars. It is things like this that keep people poor.
Just pulled 150k should I buy nvidia?
nope!
Let's say I was approved for $30k HELOC loan with a 10 year draw period. I immediately withdraw $10k the next day. Do I need to pay interest for the whole 10 years??
Youll pay interest as long as you have a balance. Thanks for watching!
@@JayCosta
Does the interest get compounded if you don't pay it that month? Does unpaid interest get added to the total HELOC balance?
Idk I'm feeling a little scepticle about this HELOC. So If I request 20k and I take out 10k for a project and the interest is lets say 9% my first monthly is $900 dollars!?
No that's not correct. It would be $900 for the year, give or take.
@@JayCosta I'm really confused on this too. I applied for a HELOC and the rate today is going to be 9%. When I calculate 9% on 25,000 it says the amount is 2,250.00. Do I take the 2.250.00 and divide that by 12? Thank you.
That is correct. The amount may differ slightly but not much. Thanks for watching!
@@JayCosta Thank you for replying.
So if I understand this correctly, if my Heloc is $50,000 dollars but I only $10,000 then I'm only paying interest on the $10,000?
Yes. Correct. Thanks for watching
@@JayCostaI own an investment home since 2016. in 2022 I bought a private property with my ex! Now we no longer together I moved out. Since I don’t have a place to live now would I be qualified to do that heloc on the investment property since the value is 1M and I owed 420,000? My credit score is 580😣 I wanted to buy to another investment property I would live in one unit and rent out the rest of the unit for now. What do you think?? Would I be qualified? Or I must wait until my ex sale house we bought together??
How much of the interest is used for tax write off? Is it dollar for dollar? Or less. Say I pay 6k in interest in 2023 does the drop my taxes by 6k or less?
I believe You can deduct any interest paid that you used to improve the subject home, but verify with an accountant. Thanks for watching!
what happens when you have a heloc with 20,000 at a fixed Interest and 20000 at a verible Interest. ???????
one heloc lien or two?
Hey Jay thanks again for all the great input and content! I just applied yesterday for a HELOC on my investment property whit TD bank. Any ideas what I might expect in order to get approved? Any help is greatly appreciated
Hey Dan thanks for tuning in. They should have pulled your credit by now. Your credit and income are the biggest factors.
Check out my first HELOC video here: ua-cam.com/video/0qiNuwSste0/v-deo.html&t
Caution, the lighting and audio stink, but it has the most views of any video Ive ever posted.
@@JayCosta you're the best! They did pull my credit and the rep said everything looks good so I'm keeping my fingers crossed. I'm gonna check that video out now! Thanks again!
I used $150,000 of my $170,000 to purchase a rental property now I'm stuck bc of interest rates. I need to pay down mortgage principal to refinance out at a higher rate in the future.
@@patrickjoyner2176 .. how is the rental property, is it producing, and what's your next plan. An any tips on , what would you have done different.
Getting a special design whole life to fund my future investments
Dont know much about whole life policies, but good luck.
Pulled a $150k on my house and bought bitcoin @ 15k sold at $25k
Risky. Be careful. Thanks for watching
Legend
Try to consolidate my personal loan that crunch my numbers 5:27 5:27
consolidation is OK as long as you are disciplined in paying it back! Thanks for watching
So heloc isn’t fixed rate
No it is a variable rate. But you can lock in a rate with your lender if needed. But usually it is a high rate.
You can get a fixed advance heloc at most credit unions. Choose between 1-15 years repayment period.
Not using heloc and hope will never
To each their own. Thanks for watching!
Video not for dummies
Thanks?
What’s the best way to contact you for advice
you can send me an email costajay@gmail.com Thanks for watching!
Thank you. Email sent
Can you make principal payments only?
Of course. As long as you cover the interest for the month any additional payment will go right to principal. Thanks for tuning in.