Everyone Needs A HELOC?

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  • Опубликовано: 6 фев 2023
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Комментарии • 308

  • @TheRamseyShow
    @TheRamseyShow  Год назад +4

    Looking to learn more? Check out these related articles from Ramsey:
    HELOC: What Is a Home Equity Line of Credit? - bit.ly/RamseyHELOC
    10 Money Traps to Avoid - bit.ly/RamseyMoneyTrapsToAvoid
    How to Create a Home Renovation Budget - bit.ly/RamseyHomeRenoBudget

    • @AlanHMartin
      @AlanHMartin 2 месяца назад

      Jade made an epic comment at 5:06 about the 3-6 Months Of Expenses Emergency Fund coincidentally being sized large enough to cover the homeowners insurance deductible for storm damage repair.
      I'm not foolish enough to think that is the core rationale for the 3-6 month figure, but (not having read the books or attended FP) I've never seen that Ramsey Rationale before. If that's not a footnote somewhere in the Baby Steps, you should add it to instructor manterials. And give her a raise for mentioning that insight.

  • @trosien-nz3je
    @trosien-nz3je 2 дня назад +551

    We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.

    • @strayhorn-dc1bq
      @strayhorn-dc1bq 2 дня назад

      Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.

    • @pacey-sd4il
      @pacey-sd4il 2 дня назад

      You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.

    • @alexus-fu5ts
      @alexus-fu5ts 2 дня назад

      Could you possibly recommend a CFA you've consulted with?

    • @pacey-sd4il
      @pacey-sd4il 2 дня назад

      My CFA ’ANGELA LYNN SCHILLING’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

    • @alexus-fu5ts
      @alexus-fu5ts 2 дня назад

      Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.

  • @linuxsurfer2002
    @linuxsurfer2002 Год назад +62

    5:30 "An emergency fund turns a crisis into an inconvenience." So true.

    • @commonsense-og1gz
      @commonsense-og1gz Год назад

      you need a strong job to fund it.

    • @satturatedphat
      @satturatedphat Месяц назад

      ​@@commonsense-og1gzwrong... that is 100% WRONG. LOOK UP VELOCITY BANKING.

  • @saraphillips1038
    @saraphillips1038 Год назад +70

    Our HELOC felt like a boat anchor… Paid it off several years ago and I will never ever do it again.

    • @ARKenMan
      @ARKenMan Год назад +4

      yeah, I discovered I don't like it either, gonna go crazy to pay this bad idea off.

    • @carolinabrown8336
      @carolinabrown8336 Год назад +9

      Same. I'd rather sell a kidney than to ever get a HELOC again.

    • @ConsensusX
      @ConsensusX 11 месяцев назад +1

      @@carolinabrown8336 You know any good brokers?

    • @DavidMFosterIII
      @DavidMFosterIII 5 месяцев назад

      Why can you explain ?

    • @Pedroza1023
      @Pedroza1023 5 месяцев назад

      because they didn't use it properly that's why. You use it for a quick flip and quick flip only. like me i have a 500k HELOC but I ONLY tap into when im paying cash for a fixer upper. Example - I purchased a fixer upper for 300k cash using my HELOC, then put 75k into it, then got it reappraised for 470k, then I did a cash out refinance, they gave me 80% of that 470k (376k), used that 376k to pay back ALL the money I withdrew from my HELOC and now I basically have a free newly renovated rental house with 20% equity in it with ZERO money out of my own pocket and now I just repeat that process. Be smart about it and don't make dumb moves like these fools and you'll be fine. and definitely don't listen to this Ramsey clown.@@DavidMFosterIII

  • @nephetula
    @nephetula Год назад +62

    Yes, "HELOC" is just a nice, sanitized, friendly term for a second mortgage.
    It's kinda like calling a plane crash "An aerial vehicle ground incursion."

    • @Nolaman70
      @Nolaman70 Год назад +3

      I have a HELOC, it's not a second mortgage, I have no mortgage.

    • @Whoreallyknows
      @Whoreallyknows 9 месяцев назад +2

      It’s not a second mortgage

    • @defendingthefaith.7889
      @defendingthefaith.7889 8 месяцев назад +1

      For those who don’t use it correctly.

    • @gofigure84
      @gofigure84 2 месяца назад +1

      This is partially correct. It is a second mortgage combined with a credit card. It's money borrowed against your home that you have to pay back with interest.

  • @KlayFennema
    @KlayFennema Год назад +79

    Main sewer line to my house needed replacing within the first few months of buying a house. It was $8k, but thanks to a good ole fashioned emergency fund, I just wrote the check. It was annoying, but the annoyance wore off very quickly since I wasn't making payments.

    • @alrbredwall
      @alrbredwall Год назад +3

      Amen! Sorry this happened to you but glad you were smart about this.

    • @tubenachos
      @tubenachos Год назад +2

      That sucks 😕

    • @KlayFennema
      @KlayFennema Год назад +2

      @@alrbredwall Thank you! Yeah it was one of those unfortunate impossibilities for an inspector to catch.

    • @kevincooper3656
      @kevincooper3656 Год назад

      8k lol what if you needed 100k? You got that in savings too?

    • @genxx2724
      @genxx2724 Год назад

      @@KlayFennema How was it impossible for an inspector to catch?

  • @ladykeraboo08
    @ladykeraboo08 5 месяцев назад +15

    We’re using our HELOC to consolidate debt and pay it off faster with a lower interest rate. The position we’re in now, we’re in about 20k debt including student loans, behind on bills and struggling to save…a HELOC is our way out from underneath it all. The payment for the HELOC is about 1/8 of what we pay individually on our debts each month…

    • @joncena168
      @joncena168 3 месяца назад +1

      I’m right about there to do that also!

    • @gofigure84
      @gofigure84 2 месяца назад +1

      Can't snowball with 1 payment. That's the downside. Hope you aren't making minimum payments.

    • @pdxmusl1510
      @pdxmusl1510 2 месяца назад +2

      Yeah. I mean I don't know your exact situation. But... Dave is adamantly against all debt to the point of being irrational.
      The problem with what you've said is you've only talked about the payment. What matters is the time to debt free and the total amount to debt freedom.
      The advantage of the snowball method is you start to get more free flowing money. Yes, your still using it on the debt, but if an emergency happens you can pay the minimums instead and handle the emergency out of pocket likely. Whereas your 1 heloc is there until you pay it off.
      However yes... if you consolidated high interest debt like credit cards you might pay less overall. But again.. that period of time of becoming debt free is longer. You not really seeing that progress. Instead it all concludes at the end.

    • @GrantSchinto
      @GrantSchinto Месяц назад

      @@pdxmusl1510 Interesting point about Dave being "adamantly against all debt to the point of being irrational." I'm not going to comment whether he is or isn't, but I bought my first house 20 years ago and while saving up for the down payment I told a friend of mine who was like, "What are you waiting for???? Why are you still renting??" and I said I wanted a large enough down payment to have a manageable monthly mortgage payment. When I said I wanted a 15-year fixed rate mortage and how ideally, I'd even wait till I could simply buy the house outright with cash he went totally of on me: "That's RIDICULOUS!!!! The bank is there to help you buy what you can't afford!!!!" I guess I was pretty biased, having had listened to Dave's radio show 4 hours a day, 5 times a week for 3 years at that point ...

    • @JayJay-jx3zg
      @JayJay-jx3zg 12 дней назад

      @@pdxmusl1510I feel like I don’t agree with that 100%. Say you racked up debt on multiple cards and the interest rate is 24% per card. The minimums added up are stretching you thin… a personal loan is. 10% over 5 yrs and if emergencies for the house or car pop up in that time, what do you do? That can snowball. What’s a better idea then?

  • @steveholt4720
    @steveholt4720 4 месяца назад +8

    This is what drives me nuts about Ramsey - he speaks about a HELOC as if the only recourse is to pay off debt. Many people use it to pay for upgrades to their house they could not otherwise afford. If you are doing renovations that potentially increase the value of your house, a HELOC *might* be a wise investment if the only other option is a loan or credit card. Speaking to the pros & cons of that would have been a much better use of time.

  • @mikeviater1970
    @mikeviater1970 Год назад +90

    I like Jade - you both work well together and have chemistry… keep it up.

    • @bensondentalassociates8690
      @bensondentalassociates8690 Год назад +16

      She’s my least favorite

    • @foodmens
      @foodmens Год назад +10

      She's nervous and no there's no chemistry she has a different personality. Everything seems forced from her end

    • @foodmens
      @foodmens Год назад +7

      Listen to laugh, it's sooo fake

    • @linuxsurfer2002
      @linuxsurfer2002 Год назад +7

      She's my favorite of the personalities

    • @tmanwheeler8270
      @tmanwheeler8270 Год назад +7

      My least favorite

  • @denada4661
    @denada4661 Год назад +24

    Jade and Dave sarcasm multiplying off each other 🤣

    • @shaunfogarty3020
      @shaunfogarty3020 8 месяцев назад +1

      yes, it's smug and a turn off

    • @leonardorodriguez6219
      @leonardorodriguez6219 Месяц назад +1

      @@shaunfogarty3020 I agree

    • @john2.012
      @john2.012 Месяц назад

      @@shaunfogarty3020Dave and Jade really come off as pricks. She didn’t even know how a HELOC worked in terms of the interest. Then he explains it and she makes fun of people out of her ignorance.

  • @ryverrogers
    @ryverrogers Год назад +27

    Wait so I get to pay interest on my mortgage and once I have gained equity on my home and I can take it back out in a loan and pay a worse interest rate on it again? Where do I sign

  • @tj55749
    @tj55749 8 месяцев назад +7

    I personally think, HELOC especially if used and utilized correctly can be to your advantage, my parents for example, when building our home used all HELOC to build our home. All in all. Put in about million towards the home and now it’s assessed at 3 million, with the basement suites rented out. Another example is, they bought a rental and they were short on the down payment so they used 70k out of a heloc to get the down payment. Purchase price for that property was 800. Now also assessed at 1.4. I think HELOC for the majority of people is horrible. This is also when interest rates were really low and they locked it in. They only pay 1.75% for their heloc. And they paid down most of it, as they always put more than the monthly amount as they want to aggressively pay it off.

  • @JoseMendoza-gq1bx
    @JoseMendoza-gq1bx 9 месяцев назад +5

    In the process of getting a HELOC. Thanks for the insight however. Loans = keep you in debt forever. This is what the banks want. Heloc isn't for everyone, but it can work and is far better to get this 'mortgage' then a loan.

  • @widescreen1272
    @widescreen1272 10 дней назад

    I am glad I found Dave Ramsey in youtube before buying a house. The baby steps is now my financial guidance.

  • @taraanthony6326
    @taraanthony6326 Год назад +33

    My advisor told me the same thing, get a heloc just in case. I refuse and decided to save at a gazelle pace.

  • @lorenzmuller3542
    @lorenzmuller3542 Год назад +7

    One can get rich using HELOCS to buy and rent out properties.

  • @CoachJJ
    @CoachJJ 2 месяца назад +2

    Well, glad to see Howard Stern paved the way for Dave’s approach 😢

  • @stizzack
    @stizzack Год назад +9

    I used a heloc in a crisis of loosing a job and paid interest only instead of principal and interest and I got thru the crisis. He’s wrong

  • @DaveM-FFB
    @DaveM-FFB Год назад +10

    Many people use a HELOC in place of an emergency fund, which is not advised. FYI, you will inevitably experience emergencies. You definitely don't want to pay interest on an emergency expense.

  • @bluerosa1550
    @bluerosa1550 Год назад +14

    I disagree with the insurance sending you money right away. I was in a hurricane and my roof got damaged. It took them a while to come and see what was wrong; one can't wait with a damaged roof when it keeps raining.

    • @lynnjoseph7359
      @lynnjoseph7359 Год назад +2

      Maybe you weren’t the only one with a torn roof during a hurricane.

  • @andyhwell8419
    @andyhwell8419 9 месяцев назад +21

    Dave reminds me of my stubborn old parents. He knows of only one way to do things and then thinks there's absolutely no other way to be creative. He probably still writes out a check at the grocery store because it's the only method he knows that works. Iv seen a lot of people jump start their real estate empire or business with a heloc and became multi millionaires. He's the definition of closed minded and unable to think outside of the box. I bet he doesn't practice most of the stuff he teaches. But teaches what sells.

    • @defendingthefaith.7889
      @defendingthefaith.7889 8 месяцев назад +3

      Dave is still in the 60s

    • @stldweller
      @stldweller 7 месяцев назад +5

      No one agrees with you, they just don't want to waste the keystrokes to tell you. For every instance you could think of where someone was lucky enough to flip heloc loan into millions of dollars There are 1000's others who went bankrupt, lost the house, lost a job, foreclosed and led to bankruptcy. You don't know everything, listen up Dave is very wealthy and practices the participles he teaches. You are not that. stop giving advice I'm calling BS on what you said also. "Iv seen a lot of people jump start their real estate empire or business with a heloc and became multi millionaires"

    • @andyhwell8419
      @andyhwell8419 7 месяцев назад +2

      @@stldweller lol

    • @walterg74
      @walterg74 4 месяца назад +1

      @@stldwelleryep. Agree. I'm not saying there's only one way. But until "random internet guy" shows us his net worth, he's just another idiot talking BS....

    • @pdxmusl1510
      @pdxmusl1510 2 месяца назад

      Actually dave does follow his own advice except one point. He won't yell at you for getting a home loan. But he didn't get one for himself. He outright refuses any debt. It's at the core of his philosophy.

  • @sherryobar5750
    @sherryobar5750 Год назад +18

    You are putting your house on the line. That's where we need to draw a line and Not take one out! Thanks for the information.

    • @satturatedphat
      @satturatedphat Месяц назад

      Look up velocity banking and stop listening to boomers. They live like the poor. The rich live on debt... almost 100%.

  • @frugalprepper
    @frugalprepper Год назад +1

    We Inherited a home with a HELOC. We have been paying on it like crazy, and getting close, but just paying the minimums will take 30 years to pay it off. It like 90% of the payment goes to interest. The interesting thing is they can call the note on these loans at any time, even if you are not behind on your payments. The were trying to get us to put the HELOC in our name, but our attorney said we don't have to. The have to honor the loan from the immediate family member that inherits the home.

  • @bellabobbybob3476
    @bellabobbybob3476 Год назад +11

    When I redid my kitchen and the floor, I paid cash. Because I think it’s very weird to borrow money for home upgrade.

    • @jimroscovius
      @jimroscovius Год назад +2

      We did the same. We recently completely renovated our downstairs family room with CASH!! That's what we use our savings account for. Then we build it back for the next project, or vacation, or a cruise, or whatever.

  • @ilikeshroomgals
    @ilikeshroomgals Год назад +1

    Learned a lot thank you Dave.

  • @alondraquintero6504
    @alondraquintero6504 Год назад +3

    I love Jade!!!! Great collab with Dave ❤🎉

  • @pdxmusl1510
    @pdxmusl1510 2 месяца назад +1

    I agree with everything except 1 thing. Show me an insurance company that would actually help you when you have storm damage because they dont exist.
    They take forever. They evaluate every angle and clause in there contract to weasel out of payment. Theres an entire industry of lawyers that continually sue insurance companies so they will pay what is due. Honestly its so bad i kinda wish the insurance industry just didn't exits.
    I have never personally met anyone where an insurance company actually helped them in there time of need. Although i know there out there and probably will reply to this comment. But imo.. even though i pay it. And im in no way telling or advocating anyone cancel any insurance the have. I just think insurance is the biggest absolute worse use of money. Period. Even worse than loans you always freak out about. At least when you pay interest you get something out of it. And yes.. in a true emergency you might be glad you had insurance. If they bother helping you.
    Last year i had storm damage at my house. I had luckily before and after shots. Our storm made national news. Etc. There was no reasonable way anyone would look at my house and not conclude it was storm damage. And yep. Insurance denied the claim. I actually would have used one of those lawyers but its just not enough to bother. It wasnt a high dollar repair. Emergency fund to the rescue.

  • @maribelmejia2693
    @maribelmejia2693 3 месяца назад +1

    I wish I knew about the heloc many years ago. I didn't do I took out a home equity loan to do the necessary kitchen repairs. Then I lost my job right after.

  • @snowboardgirl1000
    @snowboardgirl1000 Год назад +5

    My mother is 81 And still paying off her HELOC

  • @skawalker35
    @skawalker35 Месяц назад

    I’ve been in construction and maintenance for many years. For those of us who are handy and know what you’re doing I just used bonuses and extra money that came in and used it to purchase materials for home improvements. No loans, no contractors. Pulled any necessary permits. Sweat equity. If I decided I wanted to add on I’ll save up for it. I can’t believe people would borrow money for a yard.

  • @trumpshare
    @trumpshare 2 месяца назад +1

    Yep I paid a downpayment for a rental property 15 years ago from my HELOC, paid it off ASAP and now own the rental free and clear. Clearly a bad choice?!

  • @RealAgent711
    @RealAgent711 Год назад +26

    Jade is BY FAR my favorite of the new personalities you're trying out!

  • @misterdrummings
    @misterdrummings 4 месяца назад

    We had an emergency situation where we unexpectedly had to get our roof replaced and the damage was not coverable by insurance. We had to finance the project, and the finance company the roofing contractor uses (Foundation Finance) is charging over 11% interest on the loan. What is our best option for borrowing elsewhere at a lower rate to get rid of this 11+% loan in exchange for a lower rate as we strive to pay this thing off as soon as possible?

  • @RealLifefunny81
    @RealLifefunny81 Год назад +2

    Yep! I have $102k in equity and I refuse to touch it!!!

  • @bradleyvanzile1111
    @bradleyvanzile1111 Год назад +7

    I have two home equity loans at 5.9% that are FIXED for 10 years

    • @Sizukun1
      @Sizukun1 Год назад +2

      Are you boasting your debt?

    • @Nolaman70
      @Nolaman70 Год назад +1

      Mine is fixed as well.

  • @dennisf4032
    @dennisf4032 5 месяцев назад +1

    I want to sell my home(mortgage free,fully paid off) to buy a bigger home outside the major city i live in. Me and my partner want to start a family so we need a bigger home and right now in the market there's less competition so it seems like its a better time to buy. Spoke withe 2 mortgage brokers. One said to get HELOC and LOC to pay for new home. The other broker said just HELOC and the rest pay with cash. I have the cash in the bank, plus extra. Im not shy on cash. Homes near my current home are taking a month max to be sold, according to listings. I want to go with just LOC but im no expert. Any thoughts or guidance?
    Current home value $1.2mil, new home $1.2mil.

  • @raiden031
    @raiden031 6 месяцев назад +1

    Arent you required to take out a large chunk of money for a fee just by opening the heloc at all?

  • @benjiloFit
    @benjiloFit Год назад +11

    We need jade and Ramsey collab more . They are in synch. Great collab

    • @myownboss1
      @myownboss1 Год назад

      Yes! I also like when Jade and George are together; I like them a close second to Dave and jade….

  • @dc76384
    @dc76384 Год назад +4

    I never understood the idea of using a home equity loan. So I'm getting a loan for the equity in my home...so your charging me for MY homes value? That seems stupid.

  • @Gus_Chiggins
    @Gus_Chiggins Год назад +4

    Glad they explained to Jade what a heloc is before the episode

  • @_JohnJohn_
    @_JohnJohn_ Год назад +2

    If your home is all paid off...it makes sense.

  • @rwelsh1829
    @rwelsh1829 3 месяца назад +1

    But what if I'm not using the hello to update my home? What if I'm using it to pay off big chunks of my mortgage? Does the interest accrue differently?

    • @rwelsh1829
      @rwelsh1829 3 месяца назад

      I really would like an answer. I seems like your paying less in interest even if the HELOC interest was double.

  • @coniccinoc
    @coniccinoc Год назад +4

    A HELOC I never used with a bank that no longer exists (GMAC) on a house that has been paid off for years had a lien on my home I only found out about when I tried to sell. I had to put up over $90k in escrow to cover a non loan to close the sale and then wait until this mess got sorted out.

  • @defendingthefaith.7889
    @defendingthefaith.7889 8 месяцев назад +1

    So Dave says stay in debt longer instead of using a Heloc for the right purpose. And getting out of debt faster.

  • @KyleeMaedje
    @KyleeMaedje Год назад +1

    Any tips on how to deal with home insurance companies? We have a home owner insurance that's been trying to low ball us on tree damage to our home.

    • @hbarudi
      @hbarudi Год назад

      State farm offers great customer service compared to other insurance companies.

    • @JohnJohn-wr1jo
      @JohnJohn-wr1jo Год назад +1

      Best tip is stick to your guns, get multiple .estimates and if your lucky you might get closer to your number. Unfortunately insurance never ever ever will pay out 100% towards damages.

    • @JohnJohn-wr1jo
      @JohnJohn-wr1jo Год назад

      State Farm what.....

  • @hbahena24
    @hbahena24 Год назад +1

    Don’t use a heloc to fix your home use it to add passive income and put your equity to work , you only pay interest on what you use but it’s goo bro have instant access to your equity to buy an asset in a instant

  • @spbrendasp
    @spbrendasp 2 месяца назад

    What about a shared equilty agreement in a divorce buyout?

  • @revenge7879
    @revenge7879 Год назад +9

    HELOC = Paying the bank interest to borrow your own money.

  • @aaronjennings8385
    @aaronjennings8385 Месяц назад

    Emergency funds are a nice way of saying you don't want to commit to paying against principle..
    Saving money without commitment to your debts is goofish. Like a dollar waiting on a dime.

  • @Roxality
    @Roxality Год назад +4

    Two of my friends have used this. I am not sure if this benefited them. I am curious to ask, but don’t want to ask about money.

    • @peters.6343
      @peters.6343 Год назад

      It depends on how you ask them about it. You could just ask I know you got a HELOC and was wondering if you thought it was a good idea. Maybe tell them a little bit about what you were thinking on it.

  • @homeaudiobasics
    @homeaudiobasics Год назад +11

    You can get a fixed rate HELOC.
    Don't use it for simple home improvements or expensive trips.
    Use it for things that exceed your emergency fund.
    Like say your insurance is paying for a new roof, but you want to pay the 15k difference to get a steel roof that will never need to be replaced.
    Be smart with it and you will be fine.

    • @homeaudiobasics
      @homeaudiobasics Год назад

      Heloc only gets paid on as you use money from it, unlike a second mortgage that needs repayment the second it's active.

    • @Nolaman70
      @Nolaman70 Год назад

      Mine is fixed rate.

    • @MortgageMasteryTheater
      @MortgageMasteryTheater Год назад

      Seems like a really wise approach - I like it!

    • @m.b5777
      @m.b5777 Год назад +1

      Why rely on debt for emergency. Save money for emergencies. You don't want to go deeper into debt in an emergency

    • @donaldricher8815
      @donaldricher8815 2 месяца назад

      ​@@Nolaman70how do you use your HELOC

  • @MYTMIC
    @MYTMIC Год назад +4

    I opted to get a HELOC, only used it twice so far for home repairs. So far no issues, pay it off monthly or whenever I feel like it. I would not suggest using it as an emergency fund. You should have an actual emergency fund as an emergency fund.

    • @jimroscovius
      @jimroscovius Год назад +2

      @@RustyZipper Exactly!! SAVE for those things instead of giving the bank money.

    • @MYTMIC
      @MYTMIC Год назад +1

      @@RustyZipper depending on how you pay it back (large chunks) the interest is irrelevant

  • @lt4537
    @lt4537 10 месяцев назад

    Some people can not save up for emergency. When they raise kids, the money goes so fast and nothing is left.

  • @igot5onit423
    @igot5onit423 Год назад +10

    Her confidence is refreshing compared to everybody else other than Rachel walking around on egg shells around dave

    • @disco4535
      @disco4535 Год назад +7

      Just sounds like another "yes man" that parrots him anyway. Might as well just have Dave by himself.

    • @christined4842
      @christined4842 Год назад

      She doesn’t parrot him at all. She has her own thoughts and ideas. Why be so rude

    • @reneb6702
      @reneb6702 Год назад +2

      Agreed, poor Christine gets lost with him. Half the time I don't know she's there till I can see her.

    • @christined4842
      @christined4842 Год назад +2

      I’d love to see any of you give it a try so we can critique you

  • @mjbgworld5594
    @mjbgworld5594 Год назад +3

    Its not leveraged. It's a stupid loan. I'll never use it because I have an emergency fund.

  • @komradkyle
    @komradkyle Месяц назад

    And yet where is the buy a house on the 7 baby steps? Get out of debt by reducing interests with a HELoC

  • @samlancasterelectrician8815
    @samlancasterelectrician8815 2 месяца назад +1

    Accelerated mortgage

  • @amydoran9987
    @amydoran9987 Год назад +3

    They are dangerous.

  • @kevincooper3656
    @kevincooper3656 Год назад

    So are interest only first mortgages lol

  • @jodypalacois
    @jodypalacois 4 месяца назад

    But cant you use an HELOC to pay off your monthly bills and put the rest of your income into your mortgage to pay it off faster? That way you pay off the much bigger loan and only have to worry about the small one

  • @kjackson3593
    @kjackson3593 Год назад +2

    Jade just like Delony goes overboard. As does Dave with him screaming, raising his voice.... the show is not what it use to be

  • @GrantSchinto
    @GrantSchinto Месяц назад

    Ever get the feeling "Home equity line of credit" it was turned into an acronym word just so folks would be one tiny step away from having to keep hearing and saying the word "credit?" Even the most financially illiterate/ignorant/lazy know that credit and debt walk hand in hand.

  • @ydavis919
    @ydavis919 4 месяца назад

    Well i understood what they saying but if i have an emergency, dont have an emergency fund because you dont make that money and dont have the time to work 3 jobs cause you got kids....you do what you got to do.
    They seem so out of touch with the reality because they make so much money.
    Insurance companies are not in a hurry to spend money.
    Yeah we all dont have Ramsey money.

  • @goldrush7293
    @goldrush7293 Год назад

    I agree with being debt free. So let's suppose you have established the 1K emergency fund. Now while paying off debt you have a 3K emergency. How should I fund the other 2K? All I have is 1K.

    • @LouThaEnergy
      @LouThaEnergy Год назад +3

      Save more lol 1k is nonsense.

    • @fabbz94
      @fabbz94 Год назад +1

      Could you rephrase the question because I'm not sure what your asking. Are you asking how you save 2k?

    • @goldrush7293
      @goldrush7293 Год назад +3

      @@fabbz94 I'm saying if I only have a 1K emergency fund and my emergency cost 3K do I need to take a loan for the other 2k or what?

    • @terrencejenkins7995
      @terrencejenkins7995 Год назад

      @@goldrush7293really depends on the emergency. But try to avoid going into more debt if you can and save up the rest to take care of the emergency.

    • @Mjixa
      @Mjixa Год назад +1

      you got cash flow as in " income ", you go from the 1k as a reserve then throw anything else at your debt. Then, build up your 3-6 months of emergency fund.

  • @lukeharris2622
    @lukeharris2622 Год назад +1

    ✝️🙏

  • @AnalyticalMenace
    @AnalyticalMenace Год назад +1

    I didn't even know what a HELOC was until I started watching clips from this show.

  • @Nolaman70
    @Nolaman70 Год назад +17

    Nothing wrong with HELOC. I have a 50k one with fixed rate. I carry a zero balance but it's there if I need it. I will most likely use it for my next rental property down payment. It's a great tool to have in your tool box. If your not smart with money then just stay away from it.

    • @JL10007406
      @JL10007406 Год назад +1

      Thats fine, but it isnt in alignment with the Baby Steps.

    • @Nolaman70
      @Nolaman70 Год назад +7

      @@JL10007406 true but I'm an adult.

    • @JohnBeezy3
      @JohnBeezy3 Год назад +1

      @@Nolaman70 My man says “If Dave says jump off a bridge, well by golly, I’m going to jump off a bridge.”

  • @johncameron4194
    @johncameron4194 Год назад

    LOL love Dave

  • @Sayso2423
    @Sayso2423 8 месяцев назад

    What if it's an investment property with no mortgage?

    • @Josh-ii1eq
      @Josh-ii1eq 3 месяца назад

      That's my position now. 300k property, no mortgage. About to pull 75k from it and have a tenant lined up to pay $2,250 for rent.. Going to pay off my new house within 3 years and repeat.

    • @Josh-ii1eq
      @Josh-ii1eq 3 месяца назад

      I also have to add, after all our bills (new mortgage+ an extra $1,100 month) we have minimum 6k left over for emergencies/vacancies

  • @daisykaren6584
    @daisykaren6584 Год назад

    Thanks for tell me what HELOC stand stands for.. I had to look at up few year back.

  • @brettjames7996
    @brettjames7996 Год назад +1

    Unfortunately I got one but I’m paying it off once house is paid off, mine is fixed not variable though

  • @vegtagt
    @vegtagt Год назад

    They can be fixed rate or variable. I agree that variable is very dangerous.

  • @mikeruck2888
    @mikeruck2888 Год назад

    I'm confused on what's going on in this video and in the comments. Are people confusing HELOC with Home Equity Loan? HELOC is more like a credit card. So the same principle applies. A credit isn't for everyone, so you shouldn't use credit if that is something you struggle with.

  • @Heysunshineinthesky
    @Heysunshineinthesky Год назад

    😂😂😂😂😂 leverage in Debt darling lol

  • @alanhodgson7857
    @alanhodgson7857 Год назад +2

    Pretty sure BMW and Mercedes would go out of business if people stopped using HELOCs.

  • @4ssarabio
    @4ssarabio 5 месяцев назад

    22:22

  • @jamesallenrealestate
    @jamesallenrealestate Год назад +14

    This is actually not true. They're typically indexed to prime rate. (ex. prime+1% or Prime+2%) They can't just jack it up 10% because they feel like it. Some banks also offer Fixed HELOC options where you rate stays the same and will not fluctuate at all.

    • @MrJimmy3459
      @MrJimmy3459 Год назад +4

      Still a terrible product.....

  • @angelescobar1761
    @angelescobar1761 Год назад

    She lock 🔐

  • @jordanhoman0212
    @jordanhoman0212 Год назад +2

    1:30 "At what cost?" Sounds like no one knows until the banker picks a number for the day.

  • @tubenachos
    @tubenachos Год назад +4

    What if I use a HELOC to improve my house then sell it?

  • @hbarudi
    @hbarudi Год назад

    The only thing worth using this "heloc" loan for is transferring your student loan into it, but you still have to pay despite the interest rate changes it should be less than the student loan interest rate.

    • @kohiba666
      @kohiba666 10 месяцев назад

      Not for investing?

  • @chezshirecat1872
    @chezshirecat1872 Год назад

    I have an older home and all updates have been slow, but it’s getting done

  • @BigC40
    @BigC40 10 месяцев назад +2

    I have a fixed rate HELOC @ 2.70 percent. You can take a lump sum out in a fixed rate. I still have this money and am earning 5 percent interest on it (still below inflation). I am waiting for a huge down turn in the market (20-30 percent). I get this is math and this is not the kind of behavior to earn wealth. Assuming I wait for a 20-30% correction, i don't see the problem with dumping into bonds and s&p index as i can afford the monthly payments and have an emergency fund and am already saving for retirement.

  • @SpoonHurler
    @SpoonHurler Год назад +5

    0:44 This is the scariest thing I've ever heard. I'm not saying to not leverage debt if you know what you are doing... but if you know what you are doing you NEVER get a loan with variable interest rates, especially one that you can't track how it's calculated.

  • @blueaardvark1717
    @blueaardvark1717 2 месяца назад

    Yaaa then I'm more broke when I use my savings I guess I'll never be rich working and working

  • @neverl8630
    @neverl8630 Месяц назад

    I mean an obvious response. Your a anti-debt guy. But what if you ran into a financial issue. One so bad that you cant pay your current mortgage even. You would lose your home pretty soon. But if you had a heloc with a 0 (or very low) balance for emergencies, it could extend that foreclosure until you get back on your feet. It could buy you a long time. If you never get back on your feet (for whatever fail of a reason), at least you bought 2+ years before foreclosure by paying mortgage 1 & 2, with mortgage 2.

  • @kitty13kitty
    @kitty13kitty Год назад

    I have been proposing that they give the more masculine sounding words a feminine twist. Shelock is a good one, my personal favorite would be heroids.

  • @cherylbroadenax1006
    @cherylbroadenax1006 Год назад +3

    He lock me in. Heloc 😊

  • @zenthegeneral
    @zenthegeneral Год назад

    All the different ways to say the same thing: borrowing money you don't have...

  • @madesquire2796
    @madesquire2796 Год назад +1

    Any thoughts on an SBLOC instead of a HELOC?

    • @MrJimmy3459
      @MrJimmy3459 Год назад +6

      Thoughts on debt instead of debt?

    • @madesquire2796
      @madesquire2796 Год назад

      @@MrJimmy3459 I guess the portfolio generates income that helps pay off the debt vs one’s own home, which doesn’t necessarily do that. The objective would be to not sell the securities and avoid realizing taxable capital gains.

  • @KnowledgeLearningChannel
    @KnowledgeLearningChannel Год назад +5

    HELOC = Home Equity Line of Craziness

  • @markmurrell1894
    @markmurrell1894 4 месяца назад

    2021, everyone got stimulus checks. That’s why they redid their yards or whatever

  • @Batbych
    @Batbych Год назад

    you can have a 1st lien HELOC and switch between variable or fixed rate lol for a mortgage refi its a perfectly acceptable option, especially if you're looking at $0 closing costs

    • @alrbredwall
      @alrbredwall Год назад

      Thanks brokie

    • @Batbych
      @Batbych Год назад

      @@alrbredwall you’re welcome scrub

  • @dundadunda552
    @dundadunda552 Год назад

    HELOC just buys u time ..Like bridging finance

  • @listerinr
    @listerinr Год назад +4

    HELOCs are great in case of emergency only in addition to an emergency fund.

    • @earthring
      @earthring Год назад +1

      Only time where this would not work is if you cannot control yourself, which goes back to the behavioral part of money.

    • @listerinr
      @listerinr Год назад

      @@earthring you right. And if you've gone through the baby steps you should have that.

  • @icemanmcpherson1821
    @icemanmcpherson1821 2 месяца назад

    Everything easy when you're a millionaire

  • @edwardrhoads7283
    @edwardrhoads7283 Год назад +4

    Using a HELOC badly is using your home's equity AGAINST you.

    • @austintomkewitz3981
      @austintomkewitz3981 Год назад

      401k is better there's what's called a "hardship withdrawal."

  • @fabbz94
    @fabbz94 Год назад +2

    Everytime people take out money from a HELOC people think your wealthy and they don't even know what payments you are paying 😂

  • @flea4061
    @flea4061 Год назад +9

    Meh, I used a HELOC to build a garage with an apartment above it. But I had the money. I just didn't want to burn through any cash at that time. It was at 2.5% fixed and it took me five years to pay back. This was a while ago though. It worked out well. My teenaged daughter lives in it now. She comes down and helps me work on my cars when she hears me cursing. Worth every penny to me. I think people watch theses home shows too much and get a little too stupid with HELOC'S. They can't work if you are financially responsible. Most people aren't.

    • @weswest8666
      @weswest8666 Год назад

      Heloc seems fine when it is for buying something that appreciates but rates changing on helocs can be scary.

    • @MT-yx5cu
      @MT-yx5cu Год назад

      So there are fixed rate HELOCS? And the story about your daughter is too cute😊

  • @ZHop
    @ZHop Год назад +14

    I enjoy the Ramsey Show, but the intersection of snark and sarcasm makes this my least favorite hosting combination.

    • @christined4842
      @christined4842 Год назад +1

      Well Ramsey is snarky that’s why people love him. He’s funny and honest

    • @shaunfogarty3020
      @shaunfogarty3020 8 месяцев назад

      he's smug and small minded. he's a hammer and thinks that every problem is a nail.@@christined4842

    • @brasilchris06
      @brasilchris06 4 месяца назад

      Give me George and Rachel any day