How Does A HELOC Work, Practically

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  • Опубликовано: 9 фев 2025
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    In this video, Michael Lush breaks down the practical use of a Home Equity Line of Credit (HELOC) and its benefits over traditional mortgages. He explains how HELOCs offer flexible, 24/7 access to funds, allowing homeowners to manage their cash flow more efficiently. Unlike conventional mortgage structures, lush details the advantages of depositing income directly into a HELOC, which can help reduce principal and interest payments. He also highlights the importance of selecting the right bank and advising against big banks in favor of community banks and credit unions for better terms and features. Through real-life examples, Lush demonstrates how HELOCs can optimize personal finances and provide greater financial control.

Комментарии • 27

  • @OurRetireEarlyJourney
    @OurRetireEarlyJourney 8 месяцев назад +6

    We utilized a HELOC prior in our lives and it was immensely helpful in putting on a roof and driveway.

    • @ReplaceYourUniversity
      @ReplaceYourUniversity  8 месяцев назад +1

      They are incredibly practical in helping out with house projects!

    • @Cecily-g3v
      @Cecily-g3v 5 месяцев назад

      @@ReplaceYourUniversity i need help getting a heloc done. i live in the United States Virgin Islands and they rip us off here where the mortgages are high.. no one local can survive living here anymore

  • @HazelTheHomeInspector
    @HazelTheHomeInspector 24 дня назад

    This is my first time watching you…… subscribed.

  • @bluesky2145
    @bluesky2145 3 месяца назад +2

    So where do you look for the best terms and features of HELOC and what terms and features should I be getting in today's environment? Great video by the way

  • @hillbillyscotsman
    @hillbillyscotsman 5 месяцев назад

    Great video. Me and my wife are trying to gather all the information we need before applying for our Heloc and have our money work for us! LORD WILLING!

  • @BIGHAMZA
    @BIGHAMZA 12 дней назад

    My biggest concern about a HELOC is the bank can call the loan ANYTIME THEY FEEL LIKE IT. And if you don't have the balance at call, you're screwed.

    • @ReplaceYourUniversity
      @ReplaceYourUniversity  10 дней назад

      Did you know they can do that on a mortgage? It's called the "Mortgage Acceleration Clause".

  • @ambynambyn5710
    @ambynambyn5710 3 месяца назад +2

    Hi Michael, I watched you today with Noelle Randall the 1st time today, and I was sold and subscribed to your channel. But, I am really interested to have one on one support from you to help me out. I have some of the qualifications for the services you mentioned in your show with Noelle. I believe this is a Divine Connections I have been praying for without knowing how and who God will bring my way.I thank God for RUclips watching Noelle's channel, and then your show with her came up after the last post about what the banks doesn't want you to know. ❤

    • @ambynambyn5710
      @ambynambyn5710 3 месяца назад

      I will be transparent to open up to you to help me on the steps to take. Thanks Michael.

    • @ReplaceYourUniversity
      @ReplaceYourUniversity  3 месяца назад

      Go here and book a call:replaceyouruniversity.com/replace-your-mortgage/

  • @Njhomes-sv8em
    @Njhomes-sv8em 5 месяцев назад +1

    If I have mortgage loan about 80% of my house value which a total of 400k , how could I got to same bank or other to tell him switch the debt to HELOC ? need help with that ! I also know it will covert to adjustable rate as HELIC debt

  • @An7orcha
    @An7orcha 6 месяцев назад

    Great video!!

  • @Lanon0987654321
    @Lanon0987654321 3 месяца назад

    I am curious as to how a line of credit earns interest with you putting your pay check on it

    • @ReplaceYourUniversity
      @ReplaceYourUniversity  3 месяца назад +1

      It reduces interest costs. Dollars saved are as powerful as dollars earned. It's not what you make, it's what you get to keep.

  • @eaglesquest7532
    @eaglesquest7532 5 месяцев назад

    Thanks but how do we begin this journey?

  • @Latinacb
    @Latinacb 4 месяца назад +1

    If you put your whole paycheck into a HELOC to pay all your bills. Are you now paying an extra interest on all your, especially utilities that you don’t normally pay any interest on

    • @ReplaceYourUniversity
      @ReplaceYourUniversity  4 месяца назад +3

      No, the HELOC is just a more efficient place to store cash while it suppresses the balance, thus suppressing the daily interest charges. Take out what you need to pay bills and allow your savings to further decrease the interest pay back.

    • @Njhomes-sv8em
      @Njhomes-sv8em 3 месяца назад

      @@Latinacb if you paycheck in total of 10k per month that will reduce your monthly that outstanding HELOC balance of same amount , then with debit card / card link to it starting spending for your monthly needs and deposit any additional savings to lower the balance, your HELOC will be paid no way shorter time than 30 yrs fix .

  • @TheyCallMeD
    @TheyCallMeD Месяц назад

    I’m confused. Does the HELCO replace my mortgage?

    • @ReplaceYourUniversity
      @ReplaceYourUniversity  26 дней назад

      A first lien HELOC does do that. However, a 2nd lien HELOC does not.

  • @jacquelinepenha3135
    @jacquelinepenha3135 3 месяца назад

    I watched you today at the Noelle show and was very impressed. I need help. How much for a one on one with you? I am a single 64 years old and need a financial advisor. I am fired myself and want to hire you ASAP. Please provide your email.