You can take a look at my playlist here that covers 1st lien HELOCs there are many options out there so there isn’t a one bank fits all. You have to do your own research, talking to the banks, comparing options, and running the numbers. If you rely on an answer from me or anyone else you will surely make mistakes without taking extra steps in your personal finances. Hope this helps watch my playlist here ua-cam.com/play/PLnF-b0Fck4LjSeaiwguCuFxrtUKL46pyC.html&si=wr_2HUBoW4Xg6EMN
@@Fit4FreedomLLC correct the rate is the rate. I am effecting how much of that rate I actually pay. So for example if the rate is 9% and doing the strategy we actually look back and see from statement to statement I end up paying half then I paid less than the rate if that makes sense. Or to your point paying on a lower amount owed from month to month. We are both saying the same thing
So if I am using a 1st Position HELOC as my debt weapon and all my consumer debt is paid off, I lose the option of the chunking down that balance correct? Because at that point I would be treading water. I would just need to velocity bank the balance down going forward?
Correct if you have no other debt other than the first lien HELOC itself then you are just doing velocity banking on the debt tool or borrowing from the line to invest and create more cashflow and income
If there's any money left over and able to save Can you save it with velocity banking and what if for some strange Reason Reason they close the account Do you lose the money you saved or how does that work
Can you clarify the first part when you say money left over? The second part in regards to the bank closing the first lien HELOC or freezing the account. I recommend watching my videos that talk about HELOCs being frozen or cancelled. If a HELOC gets closed and there is still a balance owed the bank will require a full payment to settle the balance. If the person doesn’t have the money then that would lead to a foreclosure. If a HELOC gets frozen that means the account is still active and may get unfrozen if the client pays a certain amount back to the account. The main reason why a HELOC would get frozen is if you miss payments or too many late payments or if you max the HELOC equity and the property loses value that is when the bank takes action.
I'll give you scenario After all the bills were paid and there's money left over Can you save that money to velocity banking And if the count gets closed what happens to that money you save I hope that's a little more understanding
@@mrhardact2follow I’m assuming we are using a First lien HELOC if that’s the case and assuming we are doing velocity banking correctly all income is landing in the HELOC itself so there wouldn’t be any money outside of the HELOC. Let me know if that makes sense. If you are using a second lien HELOC there’s the HELOC and the checking account if you zero out the balance on the HELOC and the bank closes or freezes the account you would not have access to equity any longer until you gain access again.
@@mrhardact2follow correct or let’s say the value of your home 400k and you have a mortgage debt of 300k so you have 100k total in equity. Let’s say you have a HELOC of 70k and you run the balance on the HELOC to nearly maxed out and then the property values decrease which causes the value of your home will to go below 370k the bank would most likely step in and freeze access to the revolving credit in the HELOC because technically the property is under water. This usually happens to people who are not educated enough on how to properly use a HELOC or negligence.
These Case Studies are just awesome!
Thank you
What bank do you Recomend for getting a first line heloc loan to use velocity banking ? ..
You can take a look at my playlist here that covers 1st lien HELOCs there are many options out there so there isn’t a one bank fits all. You have to do your own research, talking to the banks, comparing options, and running the numbers. If you rely on an answer from me or anyone else you will surely make mistakes without taking extra steps in your personal finances. Hope this helps watch my playlist here
ua-cam.com/play/PLnF-b0Fck4LjSeaiwguCuFxrtUKL46pyC.html&si=wr_2HUBoW4Xg6EMN
I dont understand how you are "manipulating" the rate. Isn't the rate the rate, just on a lower amount?
@@Fit4FreedomLLC correct the rate is the rate. I am effecting how much of that rate I actually pay. So for example if the rate is 9% and doing the strategy we actually look back and see from statement to statement I end up paying half then I paid less than the rate if that makes sense. Or to your point paying on a lower amount owed from month to month. We are both saying the same thing
I need help managing my debt tools, how can I contact you?
So if I am using a 1st Position HELOC as my debt weapon and all my consumer debt is paid off, I lose the option of the chunking down that balance correct? Because at that point I would be treading water. I would just need to velocity bank the balance down going forward?
Correct if you have no other debt other than the first lien HELOC itself then you are just doing velocity banking on the debt tool or borrowing from the line to invest and create more cashflow and income
If there's any money left over and able to save Can you save it with velocity banking and what if for some strange Reason Reason they close the account Do you lose the money you saved or how does that work
Can you clarify the first part when you say money left over?
The second part in regards to the bank closing the first lien HELOC or freezing the account. I recommend watching my videos that talk about HELOCs being frozen or cancelled.
If a HELOC gets closed and there is still a balance owed the bank will require a full payment to settle the balance. If the person doesn’t have the money then that would lead to a foreclosure.
If a HELOC gets frozen that means the account is still active and may get unfrozen if the client pays a certain amount back to the account. The main reason why a HELOC would get frozen is if you miss payments or too many late payments or if you max the HELOC equity and the property loses value that is when the bank takes action.
I'll give you scenario After all the bills were paid and there's money left over Can you save that money to velocity banking And if the count gets closed what happens to that money you save I hope that's a little more understanding
@@DenzelNapoleonRodriguez So that's the only way a helock could be closed only on My Negligence
@@mrhardact2follow I’m assuming we are using a First lien HELOC if that’s the case and assuming we are doing velocity banking correctly all income is landing in the HELOC itself so there wouldn’t be any money outside of the HELOC. Let me know if that makes sense.
If you are using a second lien HELOC there’s the HELOC and the checking account if you zero out the balance on the HELOC and the bank closes or freezes the account you would not have access to equity any longer until you gain access again.
@@mrhardact2follow correct or let’s say the value of your home 400k and you have a mortgage debt of 300k so you have 100k total in equity. Let’s say you have a HELOC of 70k and you run the balance on the HELOC to nearly maxed out and then the property values decrease which causes the value of your home will to go below 370k the bank would most likely step in and freeze access to the revolving credit in the HELOC because technically the property is under water.
This usually happens to people who are not educated enough on how to properly use a HELOC or negligence.