Why Get a HELOC if I Want to Be Debt-Free?
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- Опубликовано: 13 сен 2024
- Have you ever heard of Velocity Banking? In short, it is a process that involves tapping into the lazy equity in your home and leveraging that equity to pay off your debts faster and invest in assets. This process is done by open up a Home Equity Line of Credit, or HELOC with a credit union or bank. This allows you to make the equity in your home accessible to pay off your debt faster and invest in assets. In this video, I dive into the topic of how a HELOC differs from a credit card and why it is a good tool to use in your journey to financial independence.
For a free guide to get started with Velocity Banking in 3 easy steps, including a HELOC Checklist, email me directly at couplescreatecashflow@gmail.com.
If you want guidance in implementing Velocity Banking, feel free to email me directly at couplescreatecashflow@gmail.com and I'd be happy to help!
I just launched a new course, "How to Get the Right HELOC for Velocity Banking". Check it out at the link below:
couplescreatecashflow.mykajabi.com/how-to-get-the-right-heloc-for-velocity-banking
your link is not active/errow message. ?IS A FIRST LIEN HELOC THE RIGHT HELOC FOR VELOCITY BANKING.
Thank you! My HELOC is funded on 3/20 and I am going to start to do this. I hope that I understand this so I can do it correctly.
Dawn, feel free to sign up for a free coaching call if you want to get an idea of how to get started with Velocity Banking: couplescreatecashflow.mykajabi.com/offers/cJECunNs
A Heloc is just a second mortgage at the end of the day the easiest way to pay off your mortgage is to just pay extra every month and if you have a bad month then just pay your regular payment.
Thanks for your opinion, and that is a way to pay off your mortgage. The only thing that you really miss out is the liquidity that a HELOC provides in case of excellent investment opportunities that come up or the negative life experiences that you need to have some liquid funds available to manage. Remember, with a HELOC, you don't pay any interest on the funds until you use them, so opening a HELOC is different than getting a 2nd mortgage LOAN, as with those products you receive all of your money up front and pay the interest (and monthly payments) immediately.
Where's best HELOC these days? Mortgage company Mr Cooper only wants an equity loan (we know why). Love your content & perspective - non-biased & practical
Hi Dail, I cover how to find the best HELOC in-depth in my course, How to Get the Right HELOC for Velocity Banking, which is now live! Check out this page to get some more information: couplescreatecashflow.mykajabi.com/how-to-get-the-right-heloc-for-velocity-banking
Fantastic explanation. Great presentation. Thanks a lot.
Thanks! I'm glad you enjoyed the content.
Thank you so much for providing the details about HELOC! I want to setup my HELOC as velocity banking and take an advantage to browse my equity for down payment for a new home. See you on March 15.
Thanks for explaining it makes more sense now.
Glad to help!
I'm currently paying for an investment property in Cap Cana, Dominican Republic, I'm paying 50% by the time it's completed. It should be ready early 2024. At that time I'd have to pay the remaining 50% ($58,900). I have a property in The Bronx with a 3.5% int rate, which means I should not do a Cash out refi, it'll definitely be a higher interest rate. To pay that 50%, I'm looking to do a HELOC with a plan on paying it in 5 years. The investment property should pay itself at least 85-90% each month. I'm pretty fiscally disciplined, and trust myself to save the money to pay back the HELOC in 5 years. I understand that HELOC's should be paid down in less than a year, but if my draw period is 10 years, payback is 10 or 15, I'm pretty sure I'd be able to save the $ in 5 years ... Thoughts? I was looking into borrowing that $60k in the DR but their interest rates are about 5 to 5.5% & are variable (fixed for up to 3 years)..
Hi Francisco, it sounds like you should keep your 3.5% mortgage on your property in the Bronx. I'm assuming your HELOC would be based on your equity on that property. If you are able to get enough of a credit limit to cover the rest of your payment on your investment property, it sounds like you could maybe use the cash flow from your investment property to help pay down the HELOC. It'd be important to be aware of your HELOC interest rate and whether or not it can change over time. If you don't have a HELOC yet, check out my course on how to get the right HELOC for Velocity Banking. I go over what features to look for as well as how to sort through the options that are out there to get the best one. I also just reduced the price from $147 to $97, so it's pretty good value for 2.5 hours of education. couplescreatecashflow.mykajabi.com/offers/aPUdKV9F
@@couplescreatecashflow137 thank you, yes all you stated is true. I was also thinking on home equity loan as it could be a fixed rate. There's a bank in the DR offering 4.25-4.75 fixed int rate.. I'd have More homework to do
@@franciscodiaz3634 The only issue with a home equity loan instead of a HELOC is that you are then locked in to a monthly payment with an amortized loan, which could actually cause you to pay more interest over the repayment term than if you used a HELOC with a higher rate, based on how the interest is calculated.
You mentioned helping a few people out with information. How can I take advantage of that. My debts are paid and I’d like to ask you a few specific questions. I’d love to talk if we can.
Email me at couplescreatecashflow@gmail.com for more information
Thank you!
You're welcome!
What happens when it’s paid off, nobody talks about that part. And is this good for re investing ?
When you pay a HELOC down all the way, you typically don't pay any penalty or interest. You can then have those funds available to use if you want to. It can be a good way to have an emergency fund or a way to pay a down payment on a house or rental property. Some people use their HELOC to purchase an investment property with cash and then rehab it to either sell it or place a renter into it.
only question I have? Are all your expenses coming out of your HELOC?
Yes, since a HELOC functions like a checking account, you can use it to pay all of your expenses. I recommend using a cash back credit card to pay as much of your expenses as possible and then pay off the card each month with the HELOC. That way you can tap into points or rewards of having the card, as well as the delay in those payments affecting your HELOC balance, since you could make a purchase and then that purchase amount doesn't come out of your HELOC until you make the credit card payment the following month.