The Pros & Cons of Using a HELOC in 2024 | HELOC EXPLAINED

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  • Опубликовано: 11 сен 2024

Комментарии • 113

  • @evan_phoenix
    @evan_phoenix  7 месяцев назад +8

    Do you plan on using a HELOC in 2024?

  • @kevinvictor-s2w
    @kevinvictor-s2w Месяц назад +182

    Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.

    • @doran-f6w
      @doran-f6w Месяц назад

      Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.

    • @albertlarry
      @albertlarry Месяц назад

      Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.

    • @Sofiarita-m9w
      @Sofiarita-m9w Месяц назад

      Could you kindly elaborate on the advisor's background and qualifications?

    • @doran-f6w
      @doran-f6w Месяц назад

      “NICOLE ANASTASIA PLUMLEE’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

    • @Sofiarita-m9w
      @Sofiarita-m9w Месяц назад

      Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.

  • @skoopqueen
    @skoopqueen 2 месяца назад +35

    I didn’t achieve financial freedom until I turned 40. As a US citizen, I raised capital by taking out a home equity loan. The interest rate was much lower than other loans, which made it a smart choice. With patience and discipline, I reinvested my earnings and avoided impulsive decisions. This strategy helped me grow my wealth, eventually allowing me to buy a new home and a car. If you’re looking to raise capital and achieve financial freedom, consider this approach.

    • @AaliyahRash89
      @AaliyahRash89 2 месяца назад

      How did you qualify for a home equity loan,what types of investments did you make with the loan ?

    • @skoopqueen
      @skoopqueen 2 месяца назад

      I’m glad you found my story interesting I couldn’t have achieved this without the help of Regina Louise Collaro,

    • @skoopqueen
      @skoopqueen 2 месяца назад

      She not only helped me secure a favorable home equity loan but also provided invaluable advice on where to invest and how to stay disciplined. Her personalized approach and deep knowledge of financial markets made a huge difference in my journey to financial freedomm

    • @ugojazzy7812
      @ugojazzy7812 2 месяца назад

      It's challenging to find a reliable advisor, and I appreciate your input. Seeing the successes you've achieved through Regina, I would love to have access to her if you wouldn't mind sharing how.

    • @skoopqueen
      @skoopqueen 2 месяца назад

      I work with Regina Louise Collaro as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.

  • @beastwar4
    @beastwar4 6 месяцев назад +14

    I'm only using 26,000 for dedt consolidation. My plan is to pay 500 instead of 237 in the draw period. After that me and my wife will save it for emergency use only.

    • @evan_phoenix
      @evan_phoenix  Месяц назад +1

      Great Idea, just stay disciplined and live below your means. The mistake is when people consolidate debt onto a HELOC, and then go rack up the Credit cards again. Good luck!

    • @beastwar4
      @beastwar4 Месяц назад +1

      @evan_phoenix naw, I'm back to 1 credit card with a 2,000 limit. I'm just paying my heloc back only now. Nothing else

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      @@beastwar4 👍👍

  • @jamesarthurwrites
    @jamesarthurwrites 4 месяца назад +2

    This was excellent. Thank you! We simply want to build a fence, buy some new appliances and fix up the bathroom

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      Thank you! Goodluck with those rennovations!

  • @Animalgodpuppet
    @Animalgodpuppet 4 месяца назад +2

    Thank you for this information. I am currently exploring different ways to pay off high interest credit cards and other debt. This is one alternative.

  • @braulioespinoza1820
    @braulioespinoza1820 5 месяцев назад +1

    Good informational video. I'm currently in the process of getting a HELOC for debt consolidation. If everything goes to plan, I'll be debt free in a couple of years.

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      Thank you! and look at you go, congrats!

  • @Rudolphedward
    @Rudolphedward 4 месяца назад +9

    What if my home loses the value while I have the HELOC?

    • @user-ei6kl1kl2y
      @user-ei6kl1kl2y 2 месяца назад +2

      Good question 👍🏻

    • @Rudolphedward
      @Rudolphedward 2 месяца назад

      @traybern 😂

    • @evan_phoenix
      @evan_phoenix  Месяц назад +1

      Yes it is!

    • @evan_phoenix
      @evan_phoenix  Месяц назад +1

      The amount of your HELOC will not change, you would probably want to make sure you paid off the HELOC fast or not use it if you haven't. They wouldn't give you a 100% LTV HELOC, so hopefully that wouldn't happen

    • @Rudolphedward
      @Rudolphedward Месяц назад

      @@evan_phoenix thank you

  • @Powner187
    @Powner187 Месяц назад +1

    Put it all on red. That's what I want to do!

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      @@Powner187 some days I feel the same way lol

  • @user-ei6kl1kl2y
    @user-ei6kl1kl2y 2 месяца назад +3

    Is it any bank who provide fixed rate ? Does HELOC impact my credit score in any way during using and before get it?

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      THey run your credit when you apply but not every time you use it after getting it

  • @Thisizme
    @Thisizme 28 дней назад +1

    Hello With a heloc if you let's say take out 10,000 and you use 6,000 you only pay back the 6,000 is that correct? Does the other 4,000 go back to the value of the home? Or does it still or could it still raise taxes?

  • @Yoha89
    @Yoha89 7 месяцев назад +4

    Hey Evan thank you for the important information.
    So my wife and I bought her parents home as a gift of equity so we only paid 60k for it but it is worth about 330k and it needs about 20k in repairs to be up to market standards.
    Also I want to add equipment towards my business that I have which makes money as well.
    We are definitely going to talk to our local credit union that I heard has lower rates and we won't have to pay any processing fees.
    Let me know what you think.

    • @evan_phoenix
      @evan_phoenix  7 месяцев назад +3

      Wow! What a deal man! So you own the property outright or you have a 60k mortgage? Just be careful with the variable rate, and make sure between your wife and your income that you can comfortably afford the HELOc payment each month. Have a solid plan on paying into back, but love the idea investing into your business. Just don’t over leverage

    • @Yoha89
      @Yoha89 7 месяцев назад +2

      Yeah so we want to stay under the 50k margin using the HELOC and my mortgage is only $690 a month so we should be good I think we can go for the 5 year mark to be a very comfortable spot and have enough money to pay it all back. We don't have any major bills except one car payment and the mortgage.
      Thank you for your valuable input.

    • @evan_phoenix
      @evan_phoenix  7 месяцев назад +1

      @@Yoha89 looks like you’ve set yourself up for success! Congrats to you and your wife!

  • @blaketout1791
    @blaketout1791 5 месяцев назад +4

    So this is the real question, of using a helco in 2024, with house prices what they are, (around 500k) and interest rates where they are, in order to purchase a cash flow property you need a really good down payment, so if the rental property your trying to buy is 500k and you get heloc for 100k your mortgage on that rental property is going to be 3000 plus plus the heloc of 1000$. If you took out 50k on a heloc like your example and put it on a 500k house down payment your mortgage is 3400$ a month, it’s impossible to get it cash flow

    • @scott7937
      @scott7937 4 месяца назад +1

      Our house prices are around 250,000 for a three bedroom home

    • @blaketout1791
      @blaketout1791 4 месяца назад +1

      Where do you live?? Must be nice! Haha

    • @scott7937
      @scott7937 4 месяца назад +1

      @@blaketout1791 Southern PA

    • @quintonellsworth1862
      @quintonellsworth1862 2 месяца назад +2

      Terrible use of a heloc loan

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      I hear you for sure and that eliminates a lot of the homes for sale, but off market opportunities could work. Below market properties. Or a market with avg sale price of 100-125k

  • @dauuiel
    @dauuiel 6 месяцев назад +4

    You mentioned taxes and insurance. Could you please elaborate?

    • @baischgolfer
      @baischgolfer 5 месяцев назад +6

      As far as taxes go, I believe he is saying that the potential appraisal on your property could get sent to your county, and they will raise your property taxes based on that new higher appraisal number.

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      That was what I was trying to say, but I have learnt since that they say that appraisals don't affect home prices but both times I got my properties appraised, they both sky rocketed the next year. Seems fishy lol but just have to run your numbers well

  • @JairoAlvarenga-x8y
    @JairoAlvarenga-x8y Месяц назад +2

    My Current house is appraised at $450K, I don't have a mortgage and would like to take out a HELOC to buy land and build a second property. I'm estimating that it will take about $200,000 to buy the lot and build the house in total as I am a contractor. Depending on the market I could sell the house or keep it. Would HELOC be a good option if I do decide to sell the house as soon I am done with it? House could be built between 8 - 12 months and similar models are selling for $300K.

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      @@JairoAlvarenga-x8y what market are you in? Will you be the GC? 200k all in for a lot and build sounds amazing.
      I would ask what your goal is? If you can refinance the new build and keep as a rental take you money back out to pay off the HELOC and potential do another to build a rental portfolio. Or sell take the cash and buy more lots to build

    • @JairoAlvarenga-x8y
      @JairoAlvarenga-x8y Месяц назад +1

      @@evan_phoenix Hey Evan, I'm in Central Florida Market, more specifically Ocala Fl, Kissimmee, Port Charlotte, Sebring. Areas that are currently growing. I know others developing in those areas and are building and selling for similar numbers. My goal is to ultimately build my real estate portfolio but first I would like to start building capital by building. I would be the GC in those project and would do most things in house with my team, thus why the prices to build are so low. I am young so don't have all the capital to build with my own money so that is why I am looking at the HELOC. Afterwards I am planning on getting investors to be able to build more homes once I have the ball rolling. I would really appreciate any advice.

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      @@JairoAlvarenga-x8y if the numbers make sense that looks like a great plan. Ultimately you are the professional as the GC. But funding through the HELOC to then build and sell is a good way to save up reserves to then put down on rental real estate. Just be confident in your numbers👍 let me know how it goes!

    • @kevinguzman1324
      @kevinguzman1324 Месяц назад

      ​@@JairoAlvarenga-x8yhey man, I also live in the port Charlotte area with the same goals as you... To have a real estate portfolio too. Do you have a financial advisor or something like that

  • @Adore.Winter
    @Adore.Winter Месяц назад +1

    I just want to redo my floors and upgrade the bathroom so I can sell my house. Is this a smart move?

    • @evan_phoenix
      @evan_phoenix  26 дней назад

      I would contact your real estate professional that will be listing your house and see if those updates will increase the listing price enough to solidify doing the work!

  • @aaronzheng519
    @aaronzheng519 21 день назад

    Does it make sense to use Heloc to do the renovation on the house I’m going to purchase as a primary residence? This new primary residence property will have an ADU, and I’m also planning to rent out my existing home has a 2.7% interest rate on it (where Heloc going to borrow the money from). The main thing is that I have cash to pay down payment but I don’t have extra cash to do renovation. Maybe I could just borrow extra money from the new loan? 😅

  • @michaelsantiago783
    @michaelsantiago783 4 месяца назад +1

    Should I do fixed vs variable? Interest only vs interest + principle? Thanks for the advice

    • @Pilot_the_Dune
      @Pilot_the_Dune 4 месяца назад +2

      It is going to be difficult to get a HELOC with a fixed rate. I shopped everywhere and couldn't find one.

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      I agree!

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      If you can find a Fixed HELOC, great! But which ever one you feel more comfortable with!

  • @rjames7380
    @rjames7380 14 дней назад +2

    If the heloc is all paid off. Does the bank still have say on your property?

    • @evan_phoenix
      @evan_phoenix  14 дней назад

      @@rjames7380 if you have a zero balance you are good. It’s when you have a balance and don’t pay

    • @rjames7380
      @rjames7380 14 дней назад

      @@evan_phoenix Perfect! Thanks for the advice

  • @Gumby6583
    @Gumby6583 4 месяца назад +2

    My bank said I had to use it for my personal house repair only.. why?

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      That is strange! Not sure, my bank didn't care. As long as the monthly payment is made

  • @2008romboy
    @2008romboy 2 месяца назад +1

    Is there more risk of losing the property with heloc than without it? In other words, why do they sound like it’s easier to lose it with Heloc than the conventional first mortgage that can foreclose it if you fail to make payments on time 🤔

    • @evan_phoenix
      @evan_phoenix  Месяц назад +1

      More risk of losing property WITH a HELOC and a Mortgage , than just a mortgage

  • @albundy3929
    @albundy3929 4 месяца назад +2

    wow, in what state can the appraisal make your property taxes jump up? I've never heard of this.

    • @arroyofive9259
      @arroyofive9259 3 месяца назад +1

      California

    • @albundy3929
      @albundy3929 3 месяца назад +2

      @@arroyofive9259 how? Isn’t there a cap in CA? Unless you get permits and make significant implements right? How would the county know that you got a private appraisal?

    • @evan_phoenix
      @evan_phoenix  Месяц назад +1

      I live in Maryland, but I've done two appraisals recently on rental properties. The following year the taxes jumped up. Just strange.

  • @lfranklin5786
    @lfranklin5786 4 месяца назад +2

    My house is paid off, worth about $500K Thinking about adding a pool

    • @lfranklin5786
      @lfranklin5786 4 месяца назад +1

      The pool cost is $60,000

    • @vicentee2687
      @vicentee2687 3 месяца назад +2

      pool owner here ...they are money holes something always needs fixing with them

    • @2008romboy
      @2008romboy 2 месяца назад +2

      Up to you but I’d rather not invest in that. That’s a high maintenance low value investment

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      Did you do it?

  • @josieblim
    @josieblim 5 месяцев назад +1

    Hey I owned 80k in a car , my job reduces salary from comission from 200k year to 100 k big cut I cannot afford comfortable to pay my car anymore $1300 monthly at 5.5 % interest , so I have a property in Florida renting for $2200 monthly cash flow of 1100 monthly , I am thinking about to get a heloc to pay the car off , with my income now I will be comfortable to pay my expenses monthly and this heloc , also the cash flow I will use a half to put in this heloc to get this debt out in less than 5 years , let me know what are you think please !!

    • @evan_phoenix
      @evan_phoenix  Месяц назад +1

      Could you just sell the car and buy a more affordable one? Using a HELOC on a depreciating item is probably not the best use. $1300 is a LOT for a car payment

  • @jessegonzalez9066
    @jessegonzalez9066 2 месяца назад +1

    Can you use it to pay off ur mortgage?

    • @evan_phoenix
      @evan_phoenix  Месяц назад +1

      Yea that is definitely a rabbit hole you can go down on youtube lol.

  • @foreverfaith1053
    @foreverfaith1053 5 месяцев назад +1

    Is the interest rate tax deductible if your cash out to buy vacation home?

    • @Pilot_the_Dune
      @Pilot_the_Dune 4 месяца назад +1

      Only if you use the money to buy, build, or substantially improve your home. Can't be a rental. Has to be your primary or secondary residence.

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      Ask your accountant!

  • @NajeraJavier
    @NajeraJavier 28 дней назад +1

    Why not just refinance? Keep the money

    • @evan_phoenix
      @evan_phoenix  27 дней назад

      Sometimes your rate on your mortgage is just too good and makes more sense to refinance

  • @SoAmbitious
    @SoAmbitious 6 месяцев назад +2

    Do you think it’s good to get if you’re trying to consolidate debt?

    • @jsalv9130
      @jsalv9130 5 месяцев назад +2

      Depends .. but more often times you want to avoid a heloc to pay debt

    • @Pilot_the_Dune
      @Pilot_the_Dune 4 месяца назад +2

      If you have a good plan already in place to pay back debt, a HELOC can potentially save you $1000's on interest payments. Like having 2 credit cards with 29% interest and getting it down to 8.9% but still paying it off with a plan.

    • @evan_phoenix
      @evan_phoenix  Месяц назад +2

      I agree with both @jsalv9130 and @pilot_the_dune ! Ultimately you should be completely honest with yourself and ask yourself if you can be financially responsible. Although a HELOC is a great tool, it can be disastrous if you consolidate your Credit card debt onto the HELOC, and then go and rack up your credit card again. That would leave you between a rock and a hard place! Hope that helps!

  • @oneisnone7350
    @oneisnone7350 2 месяца назад +1

    Paying only interest is also a con.

    • @user-ei6kl1kl2y
      @user-ei6kl1kl2y 2 месяца назад +1

      depends how much you can make on top the money you borrowed ., means what is your ROI., if it more than interest you are good way

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      Very true it can be

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      Agree!

  • @marcogarcia4240
    @marcogarcia4240 Месяц назад +1

    Credit card debt

  • @DirectorJanson
    @DirectorJanson 17 дней назад +1

    Let me help you there friend you should never take a HELOC.

    • @evan_phoenix
      @evan_phoenix  16 дней назад

      @@DirectorJanson just because you have an opinion, doesn’t mean it’s law my friend. A HELOC is a tool and if you use correctly, can be beneficial. If it is used irresponsibly, then not good. Have a great day!

  • @greenerdays999
    @greenerdays999 4 месяца назад +1

    You should never have to pay for the cost of appraisal.

    • @user-ei6kl1kl2y
      @user-ei6kl1kl2y 2 месяца назад

      Why?

    • @evan_phoenix
      @evan_phoenix  Месяц назад

      When I applied they offered a free appraisal, but usually you would have to (in my experience)

  • @EhtizanEditor2
    @EhtizanEditor2 6 месяцев назад +1

    Hey Evan, I watched your video and I must say it's really amazing and helpful.
    Do you want a website? I'll design a FREE website UI for your business. If you like it, then we can talk further.