Everyone Needs A HELOC?
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- Опубликовано: 9 фев 2025
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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.
What about the fixed ones?
Our HELOC felt like a boat anchor… Paid it off several years ago and I will never ever do it again.
yeah, I discovered I don't like it either, gonna go crazy to pay this bad idea off.
Same. I'd rather sell a kidney than to ever get a HELOC again.
@@carolinabrown8336 You know any good brokers?
Why can you explain ?
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
Used a HELOC to pay for 25k of home improvements, paid it off in about 16 months and closed it down after 3 years to avoid reverting closing fees. It wasn't all that bad. Allowed me to maintain my savings and still increase the value of my home. Like anything, it was great when used properly. You are not stuck with them forever, but you CANNOT use these things to buy cars, vacations, etc
Agreed. I think you need to do is smart. If you go blow it all on bubble gum, then yeah that’s an issue.
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.
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.
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.
Could you kindly elaborate on the advisor's background and qualifications?
“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.
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
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.
Amen! Sorry this happened to you but glad you were smart about this.
That sucks 😕
@@alrbredwall Thank you! Yeah it was one of those unfortunate impossibilities for an inspector to catch.
8k lol what if you needed 100k? You got that in savings too?
@@KlayFennema How was it impossible for an inspector to catch?
5:30 "An emergency fund turns a crisis into an inconvenience." So true.
you need a strong job to fund it.
@@commonsense-og1gzwrong... that is 100% WRONG. LOOK UP VELOCITY BANKING.
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…
I’m right about there to do that also!
Can't snowball with 1 payment. That's the downside. Hope you aren't making minimum payments.
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.
@@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 ...
@@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?
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."
I have a HELOC, it's not a second mortgage, I have no mortgage.
It’s not a second mortgage
For those who don’t use it correctly.
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.
@@Nolaman70 In that case, the HELOC is the first mortgage.
My advisor told me the same thing, get a heloc just in case. I refuse and decided to save at a gazelle pace.
Did you get a new advisor?
@@teenyverse7707 right!! Lol
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?!
U had money to with hold the monthly payments and interest. Alot of check to check people are the stupid ones using HELOC not wealthy people sir
Actually I have had one for 3 years. Never put more on it than I could pay off with cash. It is an powerful tool you can use to play off your mortgage fast. When you use it correctly it works
No it doesn't. That's just the Infinity Banking scam.
Ramsey you're wrong here. A Helco could keep you afloat during a employment lost and financial crisis. It's interest only and would protect you from credit damage or bankruptcy while you solve your crisis. It's also tied to the prime rate and not the whims of a banker. My Helco cost me $45 bucks to access $220K in equity. You need the Helco before the crisis as you won't qualify during your crisis. Bad advise Ramsey! PS: The Helco cost you nothing till you use it, just like a credit card.
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.
Especially if you don't have a plan to pay it back!
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.
Maybe you weren’t the only one with a torn roof during a hurricane.
I took Dave's class in 2008, took it again with my (then) fiancee in 2012. Some good advice. But lately a lot of what I see in this short YT videos is 'don't borrow money ever unless you're stupid (and you are) just save big fat piles of cash and pay everything with it.' Which is also good advice for people who have big fat piles of cash. Most of us don't and the only way to get home repairs and improvements done is by borrowing.
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.
Look up velocity banking and stop listening to boomers. They live like the poor. The rich live on debt... almost 100%.
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.
Thank you for this comment. There are a lot of wealthy 2 income households in the comments.
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.
I like Jade - you both work well together and have chemistry… keep it up.
She’s my least favorite
She's nervous and no there's no chemistry she has a different personality. Everything seems forced from her end
Listen to laugh, it's sooo fake
She's my favorite of the personalities
My least favorite
Jade and Dave sarcasm multiplying off each other 🤣
yes, it's smug and a turn off
@@shaunfogarty3020 I agree
@@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.
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.
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
Lol well put
That’s sounds like USURY
like compound interest is USURY!
Our neighbors just got done paying off their house and a few months later they are opening a HELOC for a kitchen renovation. In my mind I'm like, whattttt?!?
The interest on a HELOC is way different than the interest on a 30 yr mortgage!
I paid off a 20 year mortgage in 26 months using strategies that Dave never talks about!
I am glad I found Dave Ramsey in youtube before buying a house. The baby steps is now my financial guidance.
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.
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.
Dave is still in the 60s
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"
@@stldweller lol
@@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....
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.
Looking at a heloc through one lense, you’re correct that would dig a deeper hole. But there’s a use for a heloc and that is to dig you out of debt
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.
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.
I have two home equity loans at 5.9% that are FIXED for 10 years
Are you boasting your debt?
Mine is fixed as well.
Well, glad to see Howard Stern paved the way for Dave’s approach 😢
I didn't even know what a HELOC was until I started watching clips from this show.
Jade is BY FAR my favorite of the new personalities you're trying out!
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.
@@RustyZipper Exactly!! SAVE for those things instead of giving the bank money.
@@RustyZipper depending on how you pay it back (large chunks) the interest is irrelevant
You can use HELOC to buy and flip a home. Make a ton of money and put back the LOC money you used.
that’s why you use the HELOC to expand your small business that is already shown profits. plus you the interest payments are tax deductible when it’s for the business
Her confidence is refreshing compared to everybody else other than Rachel walking around on egg shells around dave
Just sounds like another "yes man" that parrots him anyway. Might as well just have Dave by himself.
She doesn’t parrot him at all. She has her own thoughts and ideas. Why be so rude
Agreed, poor Christine gets lost with him. Half the time I don't know she's there till I can see her.
I’d love to see any of you give it a try so we can critique you
Some people can not save up for emergency. When they raise kids, the money goes so fast and nothing is left.
A HELOC can work if you know exactly what you're doing.
1:30 "At what cost?" Sounds like no one knows until the banker picks a number for the day.
I use heloc to flx and flip
My mother is 81 And still paying off her HELOC
She pays the minimum payment then.
Seems a bit different in Canada. I have one. Rate is set at prime and goes up and down with prime. Used it three. Once very good deal on an item that was half price was 200K got it for 100K. Paid it off the next month when my receivables (consultant had outstanding invoice for 150K). Second time my daughter got married. She and her husband each owned a house. They both sold their places. As they wanted a Place new to them. They needed money to close on a 550K place unit their places they had sold were turned over to the new owners. They were both in their mid 20ies. Bank wanted 2K fee to lend them the money plus interest. I used my HELOC to lend them the money. made them sign a demand note for the loan. It cost me $180 for the loan interest. They paid me the $180. I bought farm land with it once at $800 an acre it went to 4,000 an acre a few years later. Played the initial loan of with income over 3 years.
Using a HELOC badly is using your home's equity AGAINST you.
401k is better there's what's called a "hardship withdrawal."
Everytime people take out money from a HELOC people think your wealthy and they don't even know what payments you are paying 😂
😁😁😁😁
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.
I got a HELOC to pay off our cc debt...am I wrong?
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.
Heloc only gets paid on as you use money from it, unlike a second mortgage that needs repayment the second it's active.
Mine is fixed rate.
Seems like a really wise approach - I like it!
Why rely on debt for emergency. Save money for emergencies. You don't want to go deeper into debt in an emergency
@@Nolaman70how do you use your HELOC
HELOC = Paying the bank interest to borrow your own money.
401k loan over HELOC
I am reading a contract for a HELOC and one thing I noticed it says that they want me to waive my right of homestead exemption, statutory, and other rights of redemption of, including the right of redemption pursuant to Ark. Code Ann 18-49-106 and marshaling of the property and all right of appraisement of the property. Borrower also relinquishes all rights of curtesy and dower in the property. I think that’s a lot to give up rights to for a < $20,000 line of credit. I already have more than this, but it’s invested. I didn’t want to take it out. What do you think about this?
@lillithjones993 When I got a HELOC , looong time ago, in addition to all that my bank wanted me to give them a signed deed. So they could just record the deed and have my house.
so what’s a good alternative to use when making repairs or dealing with crisis situations when you don’t have a big piggy bank yet??? I mean that a bank can help you with???? Now that you’ve voiced your opinion on the HELOC topic?? honest question.
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.
HELOC = Home Equity Line of Craziness
When I redid my kitchen and the floor, I paid cash. Because I think it’s very weird to borrow money for home upgrade.
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.
We just did the same thing and right after we used our savings for the reno the roof got damaged and needs to be replaced so we are screwed. I think we are damned to debt no matter what we choose 😅
a significant decline in home values could cause your lender to reduce your line or freeze it - as some homeowners learned during the Great Recession.
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.
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.
So Dave says stay in debt longer instead of using a Heloc for the right purpose. And getting out of debt faster.
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.
Still a terrible product.....
They can be fixed rate or variable. I agree that variable is very dangerous.
Dave definitely doesn't live in Florida if he thinks insurance companies are ethical when it come to paying for storm damage repairs. LOL
Yep! I have $102k in equity and I refuse to touch it!!!
I guess I’m the only one in the comments dealing. When life happens and you are living paycheck to paycheck. It’s hard to save. Current job is so intense you don’t have the bandwidth for another job.
Its not a crisis if you have the money to pay it off with cash but do not want to use all your saving and be left with nothing.
I love Jade!!!! Great collab with Dave ❤🎉
I took out a HELOC years ago. Didn’t really need it but I thought I might need it. Well the value of my house dropped and the bank sent me a notice that I couldn’t use the HELOC. So I paid fees to take it out, then never got to use it. Waste
If your home is all paid off...it makes sense.
I used a Heloc to buy a 80k foreclosed home than used another 60k to remodel it and sold it for 240k lucky the home sold in 2 months paid back the Heloc and made little over 90k 🤷🏻♂️
When I watch TV shows like breaking bad, all I keep thinking is, "this guy should of had an emergency fund."
🤝
5 minutes of criticism, 2 minutes somewhat informative. The co-host is an echo of Mr.Ramsey, which is kind of annoying. Can you just be informative without being a dush?
What if I own a home but don't want to sell it. Should I get a Heloc to fund building homes on some land I own? Or should I just sell the home and use that money for funding?
We need jade and Ramsey collab more . They are in synch. Great collab
Yes! I also like when Jade and George are together; I like them a close second to Dave and jade….
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.
Thats fine, but it isnt in alignment with the Baby Steps.
@@JL10007406 true but I'm an adult.
@@Nolaman70 My man says “If Dave says jump off a bridge, well by golly, I’m going to jump off a bridge.”
I was looking for this type of comment. I have a va loan, - on a single split level home, and on a duplex, I have a conventional loan on another single. The first VA loan split level has 210k in equity. 85% if that is say $170k. I can then use that untouched as “savings” as stated by the credit union. And it’s leverage. Thanks guys.
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.
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
Easy to save money when you have money the only money I could possibly save is going into 401(k) now and I don’t even want to do that because I can’t getting a match
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?
I really would like an answer. I seems like your paying less in interest even if the HELOC interest was double.
@rwelsh1829 Don't do that. That's the stupid Infinity Banking scam.
Unfortunately I got one but I’m paying it off once house is paid off, mine is fixed not variable though
Any kind of money is bad and can be good. Depends on how you use it. If you are using it for something thT will build cashflow on short term, yes, but never use them for home development nor want purchases
Lol love the "SHELOC" at the end there. People get triggered like crazy these days with comments like that.
Arent you required to take out a large chunk of money for a fee just by opening the heloc at all?
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?
Learned a lot thank you Dave.
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
He lock me in. Heloc 😊
😆 well done
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.
Heloc seems fine when it is for buying something that appreciates but rates changing on helocs can be scary.
So there are fixed rate HELOCS? And the story about your daughter is too cute😊
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.
Loan and line of credit are not the same. A home equity line credit (HELOC) is not a mortgage, Dave is 100% wrong on this. A a home equity loan is a mortgage. A HELOC works like a credit card, you only owe what you spend on it. You can treat it like a checking account by automatically adding your income into it, this is the greatest benefit of a HELOC because when your income is deposited it counts as a payment. You can't do that on a mortgage. Additionally you can withdraw cash and pay other bills on a HELOC. The interest on a HELOC is calculated as the average daily balance * the interest rate divided by 365. This is not a scam, this is a legitimate way that people pay their mortgages off. You can literally decrease your mortgage by tens of thousands of dollars over a few months. A mortgage will not let you do that because you pay all the interest upfront.
A mortgage is a legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.
A HELOC is a Mortgage by definition
It is a mortgage. Just because it is a revolving line of credit doesn't mean it's not a mortgage. It is a line of credit secured by your house.
@@Fred2-123 it's not a mortgage because you don't owe anything until you spend money with it. It works just like a credit card, but the interest is not amortized, it is simple interest only, so it's better than a credit card or a mortgage.
@@LambdaBam Let's see what goggle has to say. "A mortgage is an agreement between you and a lender that allows you to borrow money and gives the lender the right to take your property if you fail to repay the money you've borrowed."
Here's another from a law firm: "Mortgage debt is a debt that was voluntarily incurred by the owner of the property, either for purchase of the property or at a later point, such as with a home equity line of credit."
From your POV, explain how the HELOC can be useful. I don't plan on doing it, I'm just wondering.
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.
One can get rich using HELOCS to buy and rent out properties.
Just a another product on the shelf for the banks to sell you on. 🤣
Pretty sure BMW and Mercedes would go out of business if people stopped using HELOCs.
That wouldn't be a bad thing.
Its not leveraged. It's a stupid loan. I'll never use it because I have an emergency fund.
Well said😁
I have 60k worth of credit cards which i never use i will use if i m dying kind of emergency to save myself from that trouble and pay back in 30 days if i assume i cant pay in 30 days i might choosing death over credit card usage
Why not use a HELOC to pay off a mortgage faster!
I have an older home and all updates have been slow, but it’s getting done
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.
Not for investing?
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
Debt is your friend ….. NOT
What if u flip it quick
I see Dave has never dealt with insurance companies after an emergency 🤦. No Dave, they don’t show up to write checks. They walk away.
Agree with the emergency fund though. Mine covered all the upfront costs for home repairs. Insurance company only covered half due to all exclusions. Fortunately I had cash.