HELOCs Vs Home Equity Loans Explained | The Pros and Cons 

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.

it’s a personal decision, but Forbes says housing activities will remain stagnant for the most part of the year, so maybe hold off a little.

Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.

I'm new to this, where do I find a fiduciary, can you recommend one?

Sonya Lee Mitchell is the fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

Awesome!

Not if your credit score sucks, your DTI is too high, or your have a mfg home.

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Love this analogy

Yes sure

@@ob2be1 Amen

@@Maggiemagic305 Amen

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But the home line of credit the interest will change it can go up or it can go down. If it goes up then your monthly payment will go up. I don’t think I like that.

Awesome!

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Awesome!

@@RynAmelli84 Too many questions.

Started mine at 2.5 % then the rates rose as we all seen . Now it’s at 7.2 % serious increase in the last months wow . Interest only payments that tripled. Mortgages are cheaper rates wow

Awesome!

❤❤

same here

Awesome!

All depends on how she deploys it, If the return on her next venture is 10-15% then when the market pulls back she at least breaks even.

I think she put 100k down, then it appreciated 160k…. So that would be 260k in equity. Still don’t love the idea

You follow them too!!!

What if she do a subject 2 and that person's home is valued at 250,000 with 75% equity in the property at 187,500 with a note at 4%. It really depends on how the money 💰 is used

Exactly what I was saying. 100k out is risky business

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Did you end up taking the loan?

@@TeeLovee100 I just secured a $50,500 HELOC, 10.25, 3 yr Draw, 7 yr hold, 20 yr repayment. Have to use a check book to make withdrawals, 48 hours to post mountain time.

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of course!! second mortgages are either getting defaulted on cause the client cant pay it back or they are getting refinanced so the bank loses money and in todays economy its too much of a risk.

Only reason we clicked on this video, want a complete explanation on that.

He mentioned the rates can go up or down depending on what goins on in the market

I was thinking this same thing before I made a decision on getting a HELOC,refinance,or just sell my current property and use some of that money for a larger down payment so I won’t pay PMI.

What are the best places to go i got a 698?

@@jackieroach2124 I am a license loan officer and check out my youtube channel. Usually HELOC's reuired a min of 660, you should be able to get one thru your bank or any other lender that offers these products. Shop around with at least two leaders to get the best terms!

Me too I’m sick of HOA

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I'm a lender. We look at the monthly payment for a HELOC or heloan. Just like a credit, we use the payment due not the potential full amount of the line of credit.

@@TimTomkowiak : Hello … do you know of any banks who offer a fixed rate for a Heloc other than PNC bank?

@@Marie34694 PNC is good for HELOC s etc there process can be slow tho. I can't think of any off the top of my head. But check with a few local credit unions

@@TimTomkowiak thank you 🙏🏽

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First off, a house is never your home. You are just living it for a specified amount of time. While you're living in it, reap some of the benefits. That's really what a house/home is for.

@@BayouHotBoy1 yep that’s right because we all are going to pass away and a new generation will the house belongs to. But it is nice to have a free place to live before we go and give the house to children or grandchildren

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Awesome!

This is exactly my situation. I’m converting my garage into a 2 bedroom apartment for my son. I’m not investing in other properties but my own.

@@roseortega807 In 2 months he hasn't answered my question. Guess we'll never know his take on home additions.

@@Kagamid and 10 months ago the fixed rates were lower ,,, good luck

Yup, sell your home. Especially if you fix it up and then sell it.

some of these are hard to get, i could refer a program i got easily.

What’s the program you used?

​@@robbinbanks2869 Hey,i received my funding through Alibaba. They're great for various types of loans. If you want, i can refer you to the loan agent i worked with. Goodluck on your financial journey! 🌟💸

here's his handle..

loanagentjude

How does an equity loan work and is it good ideal?

But it's never your home. Every millionaire and billionaire knows this.

good luck finding that unicorn in todays market lol

Hello, Which institution did you take out your HELOC with?

Can you list the instruction? Thank you in advance.

Credits to ROCHELLE DUNGCA-SCHREIBER, she has always had my back all through the process of working and investing. You can glance her name up on the internet and verify her yourself. she has years of financial market experience.....

No use your own money.

yes

some of these are hard to get, i could refer a program i got easily.

No.

almost any bank now days that i know of is gonna start your HELOC with a draw and they can be really high, SpringEQ starts you off with a draw of 50K, now given you dont have to keep the money of course but thats how you will start, most likely. HELOC's are open for 10 years where you can draw, pay back whatever you want, draw again, pay back. keep in mind the payment in that time frame is interest only so if the HELOC payment is $500 thats only interest where you need to add whatever you want to the principal ( payment can also increase due to interest rate ). my recommendation to all my clients, if you cant payback the balance in 2-3 years or less dont get one! the amount of interest you will pay in the long run if you dont pay it back quickly can be crazy where it will force you to refi. also if you are financially good and just want a safety net on the side and you know you wont use it..thats a good idea. with rates now days moving faster than normal and how high they are you need to be very careful with HELOCs

Financial literacy 101. Assets put money in your pockets. Liabilities take money out of your pockets. If a person truly understands the difference between assets and liabilities and are financially responsible, they can strategically use a HELOC, to purchase assets that produce income. For someone that doesn’t really understand the difference between assets and liabilities, a HELOC is not for them.

@@gnahthe Heloc is nothing but debt. Anyone who chose to get a Heloc loan will be swimming in deep water and especially right now the interest rate is about 10%. Good luck to everyone that takes it.

A heloc is only bad if what you’re investing your heloc money into isn’t making money ,if it’s fruitful then you’re paying it back

@@hbahena24 Is it bad if I can afford to pay it back?

@@BayouHotBoy1 well obviously not

Did u ever find anyone?

When you sell the profit its taken to pay the heloc. I did had a heloc and when I sold it paid off my heloc. New house inherited no payment I have both heloc and LOC.problem on the LOC the rate has gone up to 7.66%. I'm now in the process of paying both off aggressively I had a spending problem and getting out of debt. It was the worst thing I ever did borrowing on my home to pay my debt...robbing Peter to pay Paul. Verses getting my spending problem addressed. Plus the term is general like 10y min and you typically won't pay more.the amount of interest tie writing off isn't that much.. If I had understood I had a spending problem I would have paid aggressive on the credit card and never touched borrowed against my home. Again it's my story.. Also if you are a number person look at the amount of interest your actually paying over the total loan.then look at how much you would pay interest if paying the credit card at your max amount. Also since they take the money out of your account you get comfortable cause the payment can be low and your spending again. Sorry for the story but just showing what I went through... Good luck..

Personal preference. Just see the potential return of value. If you plan on selling, it could make you money on the sale. If you’re heading to keeping it, I would save the HELOC for repairs, debt consolidation, and emergencies

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