With the second lien heloc when it’s available you can put that full amount towards the first lien mortgage in order to pay off the mortgage faster therefore paying speeding up the whole process of paying off the mortgage faster… essentially unlocking more equity that you can take a bigger heloc out after the first heloc is paid off
Now, I understand HELOC but doesn’t the majority of Mortgages have Escrow included, therefor, when you use a HELOC, should there be a plan to pay Taxes and Property Insurance? What is the answer to this additional liability for homeowners (sometime roughly $7,000 a yr.). I’ll be checking back for a response.
Great Video, thank you for putting this together. Question- what happens to. My ‘second position heloc’ after I pay off my ‘first position’ mortgage? Does/will the heloc still only charge interest only on any charges?
You have just given me the ability to renovate a property I bought for renting and to start another business. Thank you for this video because I didn't know how to get it done before. Thank you for sharing your knowledge.
Hey Jamel hopefully you see this, so glad I’ve come across this channel.. just a question, what’s the criteria needed for the HELOC & would this apply to here in Australia 🇦🇺? Hear from you soon thanks 🙏
credit score is always the key to get started, I'm sitting a ton of equity on my home but can not touch it cause my score not good enough. Bummer cause I wish I can pull some and get ride of high credit card intrest and truck. 😮💨😮💨
I don't understand on HELOC, if there is only interest paid in the beginning, how do you ever pay the principle down? Is there a penalty for early pay off?
Man I’m checking on a heloc Monday, I’m a beginner in REi and was about to take a hard money loan for a cash flowing property I have a purchase agreement on, I’ve got 250k equity in my personal home. Thanks for the knowledge!
Just seeing your video. I have been doing Infinite Banking since 2007. It works as long as people have self control. This is not a plan for people with Pig issues ( personal instant gratification) . This is how I have paid off two homes four vehicles two boats and a camper in the last 17 years. Anything over 5% interest rate on an amortized mortgage is over 100% someone has to pay back to the bank before they start paying for the house. I always do 1st position HELOCS. At year 9.5 i start the process of recasting it so it never goes into repayment loan.
This information was mind blowing to me. I felt like we've been sitting on an opportunity and not knowing what to do with it. Definitely going to see what option is best for us! Thank you Jamel and D'Andre!
Make sure you have life insurance on yourself and unemployment insurance incase you pass and if you are ill and unable to work. These guarantee the loan will be paid.
This is fire!! Thank you 🙏🏾 guy’s for real! I’m presently waiting approval for my first lien heloc and I’m seeking wisdom on how to incorporate a mutual life insurance plan paid through the heloc. If you’re available to advise. Thank you. Kerry
Thank you for this content and explanation. Getting a Heloc makes a lot of sense to me but fear always stop me. My house is paid off, but I’m drawing in debt due to a health issue I had -which is over now thanks be to God. Teachings like yours helps me to get a little more courage to act. God bless!
jamel.....not sure if you will see this or not but have been watching a few of your videos related to HELOC's ..... I do IBC exclusively and want to incorporate using the Heloc but truthfully not sure which direction to head in - can you offer any suggestions or be willing to chat a few minutes?
I’m sorry guys, I’m trying real hard to understand but I’m still lost and confused? How do you put your first position mortgage into a first position HELOC and pay it off in 7 years?? What???
Thank you, guys, for a very informative material I learn from you! I've asked my FCU about 1st lien position heloc - they don't offer it now, they do offer 2nd lien one 4.99% for 9 months Promotion period with 10 years draw period and 10 y. pay back. They only offer it with mortgage insurance which I would wish not to have. I've been using 13 k ploc to pay off my mortgage, don't have much other debts. I almost half way of paying it off utilizing VB. Would you recommend to get a 2nd lien heloc with mortgage insurance vs. using slower working ploc? I have more than 2k cash flow it helps to pay off 10k chunks in a shorter time. I greatly appreciate if you could answer this my question.
Great video I love the Contant I just have one question that I’m confused about, so can I take a first lien position if I already have a mortgage that is not paid off credit scores great 782, but I was a little confused as if I need to take a second lien position because I already have a mortgage that’s not paid off
For the love of God, don’t refinance your low interest mortgage to a first lien HELOC! There is no such thing as amortized interest. You’ll be paying more with the higher interest HELOC. Just pay extra to your principal if you really want to pay off your house faster. If it really makes you feel better, have a second lien HELOC but don’t use it unless it’s an emergency.
I always love when I see comments like this. So first I will will agree with one part of the statement you made. Don't Refinance into a First Lien HELOC but there's an if. That IF is if you don't have a decent amount of cashflow or have not learned how to budget. Now if the opposite is true however we make sure to include in our calculations for the clients the Effective Interest Rate of the loan which would be the equivalent if a person had the HELOC in place for the 30 years following our strategies. Just yesterday we did a calculation where the client cashflow was 3k and their effective interest rate if the loan was amortized came out to be calculated at 1.4%. So I guess the question is can you find an interest rate lower than that in today's market.
Great questions the dangers of not having your estate planning done apply to every situation is there is any transfer of wealth or possession or perhaps if there is a need to be kept alive while incapacitated. If your estate plan isn't done bankruptcy and foreclosure should be an expected result if your alive when a life altering event happens, 70% of people need Long-term care the older they get. If it isn't done and you've died, Probate and the confiscation of the property and perhaps having unclaimed funds that are stuck in the state treasury should be the expected result.
@@dandreclayton7936 have a question. What if you have a home, and you were in forbearance. After forbearance I’m doing a partial claim to bring the loan current. How does the HELOC work with that? Would that need to be cleared up before applying? Also what does my credit profile need to look like? I know the score is 680 for first lien position but what about the credit profile such as collection accounts, closed accounts that’s charged off?
Thanks so much for this valuable info. I live in Washington state, I’m a homeowner with close to 300,000 equity in my home. Twice I was denied a home refinance using the equity in my home to mainly renovate my kitchen and pay off an IRS pass through tax liability debt. I wish the lenders had suggested or even told me the difference between a refi & HELOC loan. My question is that I just initiated my second try at a refi and was again denied, but is it too late to convert this application to a HELOC if the application was started on Aug 25? Any help/suggestions will be so appreciated. Thank you
I really enjoyed this video. I don't worry about interest rates for my mortgage because I utilize velocity banking. Extra payments towards the principal helped me payoff 2 vehicles and now my house is almost paid off in 1 year ! Helocs may be something I try in the future. Thanks😊
You two are the Dynamic Duo, Many Thanks for the content and insight you provide. I am looking into getting a HELOC, I am not in the position right now for a 1st lien HELOC but you have provided me insight to understanding my options with the 2nd Lien and how to move forward in the future with a 1st lien. @D'Andre, I need to schedule a session with you. I didn't realize how financially illiterate I am.
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With the second lien heloc when it’s available you can put that full amount towards the first lien mortgage in order to pay off the mortgage faster therefore paying speeding up the whole process of paying off the mortgage faster… essentially unlocking more equity that you can take a bigger heloc out after the first heloc is paid off
I watched this twice. Great information and nice flow. You guys need to link up again. Very thankful for the free game. Peace.
Awesome Educational Content
Another great video! You guys definitely dropped a lot of game here. Thanks!
1:01:41 teachers need to make more $😤💯
What are the best ways to begin I you have debt? Should you pay that off first?
Such an informative video! I want to hear more about the 32 year old investing 100k. What are the specifics and where to invest?
What is the best back to apply? I live in GA.
Now, I understand HELOC but doesn’t the majority of Mortgages have Escrow included, therefor, when you use a HELOC, should there be a plan to pay Taxes and Property Insurance? What is the answer to this additional liability for homeowners (sometime roughly $7,000 a yr.). I’ll be checking back for a response.
Yes when we perform the calculations we include the Escrow of the Homeowners Insurance and taxes.
Howto get in touch with the speaker
Great Video, thank you for putting this together. Question- what happens to. My ‘second position heloc’ after I pay off my ‘first position’ mortgage? Does/will the heloc still only charge interest only on any charges?
You have just given me the ability to renovate a property I bought for renting and to start another business. Thank you for this video because I didn't know how to get it done before. Thank you for sharing your knowledge.
That’s great.
This is bad advice you'll probably get foreclosed on before you're able to pay back the loan
Hey Jamel hopefully you see this, so glad I’ve come across this channel.. just a question, what’s the criteria needed for the HELOC & would this apply to here in Australia 🇦🇺? Hear from you soon thanks 🙏
credit score is always the key to get started, I'm sitting a ton of equity on my home but can not touch it cause my score not good enough. Bummer cause I wish I can pull some and get ride of high credit card intrest and truck. 😮💨😮💨
Can I ask what your credit score is?
At what income level does this make sense for most people
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My money goes to my business. Can you talk about how that would work.
I don't understand on HELOC, if there is only interest paid in the beginning, how do you ever pay the principle down? Is there a penalty for early pay off?
Man I’m checking on a heloc Monday, I’m a beginner in REi and was about to take a hard money loan for a cash flowing property I have a purchase agreement on, I’ve got 250k equity in my personal home. Thanks for the knowledge!
Just seeing your video. I have been doing Infinite Banking since 2007. It works as long as people have self control. This is not a plan for people with Pig issues ( personal instant gratification) .
This is how I have paid off two homes four vehicles two boats and a camper in the last 17 years.
Anything over 5% interest rate on an amortized mortgage is over 100% someone has to pay back to the bank before they start paying for the house. I always do 1st position HELOCS. At year 9.5 i start the process of recasting it so it never goes into repayment loan.
This information was mind blowing to me. I felt like we've been sitting on an opportunity and not knowing what to do with it. Definitely going to see what option is best for us! Thank you Jamel and D'Andre!
Make sure you have life insurance on yourself and unemployment insurance incase you pass and if you are ill and unable to work. These guarantee the loan will be paid.
How do you go about it
This is fire!! Thank you 🙏🏾 guy’s for real! I’m presently waiting approval for my first lien heloc and I’m seeking wisdom on how to incorporate a mutual life insurance plan paid through the heloc. If you’re available to advise. Thank you. Kerry
Thank you for this content and explanation. Getting a Heloc makes a lot of sense to me but fear always stop me. My house is paid off, but I’m drawing in debt due to a health issue I had -which is over now thanks be to God. Teachings like yours helps me to get a little more courage to act. God bless!
I owe $39,000 on my home i purchased in 1998..
So...should I pay my home off and then get a HELOC?
I have a ?. I have a son on SSID. will putting him on the Revocable trust affect his benefits?. He will be 18 in October
jamel.....not sure if you will see this or not but have been watching a few of your videos related to HELOC's ..... I do IBC exclusively and want to incorporate using the Heloc but truthfully not sure which direction to head in - can you offer any suggestions or be willing to chat a few minutes?
Im loving how he makes this so easy to understand. I thoroughly enjoyed all the information and insight
Great video and explanation. Do you have a spreadsheet to compare mortgage to Heloc?
What if your house is paid for free and clear and worth 100,000
I’m sorry guys, I’m trying real hard to understand but I’m still lost and confused? How do you put your first position mortgage into a first position HELOC and pay it off in 7 years?? What???
Can you please tell me how do I reach Mr D’Andre Clayton
Omg you guys! I cant thank you enough for all this amazing information you shared in this video! You are the best. Thank you!!!! God bless you.
If you take out a HELOC can you purchase an investment property with the funds and how soon?
Yes you can take out funds from a heloc if you have enough equity in your home or property.
I don't have over an hour time to watch this....
Is 1st lien HELOC available and allowed in Texas? I have 2 primary and 3 investment properties in Dallas TX. I would like to explore it for sure.
Worst explanation ever. I am lost.
Very solid content right here! This was exactly what I was looking for!! Thank you for this!
Great info given in a very easy to understand way, subscribed
Hi gibbons can you help me with existing house to buy a second house
Please send more information. Thanks Guys!
Thank you, guys, for a very informative material I learn from you! I've asked my FCU about 1st lien position heloc - they don't offer it now, they do offer 2nd lien one 4.99% for 9 months Promotion period with 10 years draw period and 10 y. pay back. They only offer it with mortgage insurance which I would wish not to have. I've been using 13 k ploc to pay off my mortgage, don't have much other debts. I almost half way of paying it off utilizing VB. Would you recommend to get a 2nd lien heloc with mortgage insurance vs. using slower working ploc? I have more than 2k cash flow it helps to pay off 10k chunks in a shorter time. I greatly appreciate if you could answer this my question.
stop interrupting the man....please let him finish his thoughts. you need to take Oprah's masterclass "interviewing 101" 😊
Does a heloc replaces a first position mortgage
Yes it does
Here's what I know about a heloc... Don't take it live within your means instead
Mr.Gibbs, thank you for this content!
Truly enjoyed all of the information ✌🏾 God Bless Both of You 🙏🏾
I'm completely new to this and I'm seeking the information. Thank you for your video.
Badass content right here!
Great video I love the Contant I just have one question that I’m confused about, so can I take a first lien position if I already have a mortgage that is not paid off credit scores great 782, but I was a little confused as if I need to take a second lien position because I already have a mortgage that’s not paid off
Thank you both. I appreciate the patience your giving to us with this videos, building the community. 🙏
Our pleasure!
For the love of God, don’t refinance your low interest mortgage to a first lien HELOC! There is no such thing as amortized interest. You’ll be paying more with the higher interest HELOC.
Just pay extra to your principal if you really want to pay off your house faster. If it really makes you feel better, have a second lien HELOC but don’t use it unless it’s an emergency.
I always love when I see comments like this. So first I will will agree with one part of the statement you made. Don't Refinance into a First Lien HELOC but there's an if. That IF is if you don't have a decent amount of cashflow or have not learned how to budget. Now if the opposite is true however we make sure to include in our calculations for the clients the Effective Interest Rate of the loan which would be the equivalent if a person had the HELOC in place for the 30 years following our strategies. Just yesterday we did a calculation where the client cashflow was 3k and their effective interest rate if the loan was amortized came out to be calculated at 1.4%. So I guess the question is can you find an interest rate lower than that in today's market.
Really appreciate your time and info! Thank you
Really great information...
Unless you inherit or have a high salary
you have to invest in stocks real estate and or business.
That’s a fact.
Thanks for the Gems
Please do a video on HELOCs and estate planning. Does the same dangers apply with mortgages?
Great questions the dangers of not having your estate planning done apply to every situation is there is any transfer of wealth or possession or perhaps if there is a need to be kept alive while incapacitated. If your estate plan isn't done bankruptcy and foreclosure should be an expected result if your alive when a life altering event happens, 70% of people need Long-term care the older they get. If it isn't done and you've died, Probate and the confiscation of the property and perhaps having unclaimed funds that are stuck in the state treasury should be the expected result.
@@dandreclayton7936 have a question. What if you have a home, and you were in forbearance. After forbearance I’m doing a partial claim to bring the loan current. How does the HELOC work with that? Would that need to be cleared up before applying? Also what does my credit profile need to look like? I know the score is 680 for first lien position but what about the credit profile such as collection accounts, closed accounts that’s charged off?
Thanks so much for this valuable info. I live in Washington state, I’m a homeowner with close to 300,000 equity in my home. Twice I was denied a home refinance using the equity in my home to mainly renovate my kitchen and pay off an IRS pass through tax liability debt. I wish the lenders had suggested or even told me the difference between a refi & HELOC loan.
My question is that I just initiated my second try at a refi and was again denied, but is it too late to convert this application to a HELOC if the application was started on Aug 25?
Any help/suggestions will be so appreciated.
Thank you
Knowledge is so powerful
🎉
Thank you for the information.
@6:30 That little laugh by the host means his pulled that before. 😂
This is great
Excellent content❤
I really enjoyed this video. I don't worry about interest rates for my mortgage because I utilize velocity banking. Extra payments towards the principal helped me payoff 2 vehicles and now my house is almost paid off in 1 year ! Helocs may be something I try in the future. Thanks😊
How do you do veloicity banking to pay off a mortgage early
Velocity banking is the "HELOC" strategy
You two are the Dynamic Duo, Many Thanks for the content and insight you provide. I am looking into getting a HELOC, I am not in the position right now for a 1st lien HELOC but you have provided me insight to understanding my options with the 2nd Lien and how to move forward in the future with a 1st lien. @D'Andre, I need to schedule a session with you. I didn't realize how financially illiterate I am.