Why I Hate HELOCS (Home Equity Lines of Credit)

[@VIPFinancialEd]

Get your FREE one-on-one coaching session by visiting www.FreeCoachingCalendar.com!

[@doug7499]

I have a HELOC that I’ve had for 3 years started at $320000 and now my current balance is $114000. We also teach why the HELOC is beneficial. If you want to pay your house of under 7 years this is the best way. You need to be cash positive to make it work. Set a budget if you can be disciplined it works. Yes it is risky but as you see I have save thousands in interest. Push came to shove I can go conventional. 2022 paid off.

[@Yodaandhislightsabre]

I have three rental homes, two still have mortgages. Instead of trying to buy more houses, I have figured I can increase my cash flow by $1600 a month, by paying them off. One house I only owe $35k on. No risk compared to leveraging more properties.

[@VIPFinancialEd]

Yodaandhislightsabre, great stratgey with less risk. Thanks for sharing!

[@abaraniba]

Thanks for the video! I have been researching on HELOC because my wife and I purchased our first home with an FHA loan. Unfortunately, as you may know, there is no home equity line of credit with FHA loans. I am in a predicament to either refinance to a conventional loan or apply for a HELOC. As of now, our mortgage is $3900/mo, and getting rid of the MIP would be amazing (savings of $400+/mo). Thanks for your guidance!

[@jackspence625]

An HELOC is one way to protect your free and clear property from quitclaim deed fraud. The bank will be notified of any filing status change. If you have a mortgage, you may benefit by converting it to a HELOC. Principle payments can be more favorable, compared to an amortized mortgage.

[@VIPFinancialEd]

Thanks for the tip Jack Spence. Good idea.

[@Asiamisiami]

I love the HELOC, it is the best thing ever if used correctly. Just like a plane or a car is. They are scary and terrible if you drive or fly irresponsibly. If you use a HELOC irresponsible--BAD idea. Use it correctly, it is a massive benefit. The key is responsibility--be responsible.

[@VIPFinancialEd]

Tyshawn Blaise, couldn't agree with you more as you nailed it on the head. Thanks for watching and sharing your thoughts!

[@martinfromseacity2010]

Using a LOC to reduce my mortgage, 6 x FCF chunks. Thanks for the education. Already reduced my bank cards to minimums. Figuring my expenses and income were key to sucess

[@VIPFinancialEd]

Martin Susort, we're so happy that you're implementing the strategy and it's paying off. We wish you all the good fortune, and keep us posted. Thanks for commenting.

[@TheJakeRobinson]

so, I have a fixed rate 27 years left with PMI... am considering a 1st HELOC based on the LIBOR... am I making a mistake... planning to sweep 100% of income into it... income just over 100k... am I making a mistake? and why if so?

[@michelleleehoward2301]

I had only 1 HELOC that I refinanced & locked the rate, if you keep your total debits under a low percentage of your home's appreciation rate it should keep you getting your necessary repairs & out of trouble when you sell. It was my very first home sale this year, I barely broke even but did pay off some heavy debts because my neighborhood had some area upgrades.

[@VIPFinancialEd]

Thanks for sharing, Michelle Howard. It sounds like you're responsible with your money and that's great to hear.

[@vivimu]

I'm in the final stages of being approved for a HELOC on a free clear home. I plan to buy a second property with the cash then rent it out to help pay the HELOC. after 6 months to a year I will try to cash out refi the second property to payoff the line of credit. if all goes well I will repeat this process. Does this sound like a good plan?

[@VIPFinancialEd]

Sounds like a plan that's working for you. I can't say if I would advise differently without a full review. I'm glad you are proactively working at building wealth either way!

[@ahumm8280]

If you are a gambler, yes. If not, NO!

[@jasonhendrickson2289]

How did it go?

[@21silvermoon]

Have a lot of cash on standby.

[@margaritaavila2778]

Great info. I need to learn more about it. My first home is paid for but I want to buy a second home with a HELOC. Which I don't understand anything about it. I will not get into it unless I know exactly what I'm up against. Thank you for the video.

[@BoyFindsTako]

He explains this concept well, we paid off our house ($200,000 Balance) in less than 5 years “filtering” our income through a line of credit. The key is raising your financial IQ. So you understand exactly what is happening when you make a payment to your mortgage with your line of credit/HELOC/or Credit card. It sounds crazy, but I share this analogy to help people understand interest. Think of a lake, try to take 2% of the lake. Very difficult if not impossible...right? Think if a cup of water, drink 20% of the cup. My point is no one is doing the math. They see the interest rate and never question of what amount right? This is the key to understanding what all this talk is about paying off your mortgage with a line of credit that may possibly be a higher interest rate than your mortgage and still be able to pay off faster than if you did it with extra payments. It’s a simple concept but more difficult to explain. There are a lot of factors in this concept. I wish I could tell you all the questions to ask. It took me years to figure it out. But there are tons of videos on KZbin trying I explain how to do this. Get more familiar with the pros and cons of HELOC’s. When you understand the pros. Then things start getting interesting. We had all these rules that would apply to our HELOC at the 10 year mark. But we paid off less then 5 years so all the crazy rules didn’t matter. That’s how We looked at it.

[@VIPFinancialEd]

Ibridgethegap4u, great analogy as we appreciate you sharing your thoughts and insight on this topic. Great work on paying off your HELOC in less than 5 years too. Thanks for watching as well my friend!

[@samweedwek6914]

this was super helpful. After seeing your trainings it's obvious there are pros and cons and a variety of tools is best. Signed up for session...thnx.

[@VIPFinancialEd]

Thanks Sam! Look forward to talking with you!

[@loriwhitbord9860]

Had one. 2008 reduced loan amount, acct not frozen. Paid off car with it.

[@VIPFinancialEd]

Lori Whibord, that's great. Thanks for sharing your success story.

[@JoseJose-zf8ej]

Question i have no debt only houce paymets of 1900 taxes are included pluss 1000 for electric gas trash food my salary is 70K yearly in my savings is $ 100.000. Can a heloc will be helpful or just add 200 dollars more in each payment of my home will be better ? any help will be much appreciated

[@VishalRaoOnYouTube]

Subscribed...Please do an update video given the crash of March 2020. What are your tips on HELOCs?

[@VIPFinancialEd]

Vishal Rao, thanks for being a subscriber... here's the latest 2 videos we just did in regards to the current situation: kzbin.info/www/bejne/j2ayd3qum9l_o9U kzbin.info/www/bejne/kF66p3h9gq-Kqac Here's a great video we did with tips about Heloc's: kzbin.info/www/bejne/hKmuq5SCerZ2prM Hope this helps and thanks for watching!

[@raylopez6554]

Is it possible to get a HELOC if my property is under the name of my corporation? I bought a house at public auction with my real estate corporation, I'm now looking for a HELOC to reinvest my cash but struggling to find a lender. All have stated the title needs to be under my personal name.

[@andydogdixon1]

I am 62 years old. What about reverse mortgages??? Thanks!

[@VIPFinancialEd]

mark dixon, not sure specifically what you are asking about reverse mortgages but here's a great article titled: Everythin You Need To Know About Reverse Mortgages" from one of our trusted sources. Hope this helps: www.bankrate.com/mortgages/reverse-mortgage-guide/ Thanks for watching!

[@staceyroberts8981]

Where the helocs you had that we're Frozen in first position on your properties?

[@amandagalloway1213]

A HELOC shouldn’t get frozen if you’re in a first lien position. I’ve heard it happens on occasion, but why would they do that on a 1st lien? Even traditional loans have an acceleration clause and I’ve never heard of any being used by the bank. Wouldn’t the risk be about the same?

[@VIPFinancialEd]

Banks can and do freeze accounts anytime they sense potential risk. I lost a first lien HELOC in 2009. The next downturn will likely make the last look like a walk in the park. Best to prepare for anything.

[@WildNVolatile]

I have been looking into HELOC's to pay my mortgage faster. We bought our home in September and started payments in November. So I have only made 6 monthly payments so far. I am not sure I would even have any equity at this point, When i did the equity calculator it was saying some .97 and change and I guess I don't know if that means I only have a few hundred bucks in equity so far, or if I have thousands...I really don't understand it. I also used a down payment assistance program to pay on my home so really we only put about a 10% down payment on our home. We need new floors, a new roof, wanted to install a central air conditioner, add 220 electric service in the garage, pay off/down appliances we bought on credit, and possibly put a pole barn the in the back yard. HELOC's have about a 5.000% interest rate in my area at the moment, and that is higher than my 4.25% mortgage interest rate...so I don't know if a HELOC is the right answer. We want to raise the value in our home so that we can sell sooner and buy the home we really want out in the country.

[@abaraniba]

HELOC and your mortgage are two separate entities. The 4.25% you're paying on your mortgage isn't detrimental to the 5% rate you're getting on HELOC. Remember, you're paying 4.25% on a loan that equates to 6 figures (maybe 7); whereas, for HELOC, you're paying 5% on projects that can be paid off faster than your loan. A personal loan to pay for some of the projects you listed can be upwards of 10%, 15%, 20%, etc.

[@jbarres80]

Are you paying PMI generally you won’t have equity until couple yrs unless you bought very low and market took off I’m a lot like you wanting to do some upgrades my advice is if this is your temporary home meaning not your forever home then be very smart and don’t over upgrade you never want the nicest house on block If this is your forever home then start list of must dos and take your time since your not going anywhere good luck

[@Josef_R]

Why would you buy a house you didn't really want so you could pay the bank a fortune in interest so you could later borrow against it to pay it off quicker (eventually) all so you can buy a house you do want?

[@TwinsMom1and2]

@@Josef_RI think HELOC is simple interest. Mortgage is compound interest, ouch!

[@marcelrodriguez2067]

So whats the best way to buy another house? Just cash out refinance? I really wouldnt want to refinance.

[@michelleleehoward2301]

It has really been a constant on-going learning experience, I am lucky that I was not very risky but the lesson w Heloc was a good one!

[@VIPFinancialEd]

Michelle Howard, I'm glad you enjoyed the video and found it useful.

[@brucehodo650]

I have a mortgage on my primary residence, with about 60% equity in it. Rate is 5%. A HELOC sounds like a good option for me. Is it?

[@VIPFinancialEd]

Bruce Hodo, a HELOC can be a good option. The purpose of this video is to inform people of the risks with a HELOC. Best of luck to you and thanks for commenting on the channel.

[@jamaicahills7853]

Title discussion start at 1:45min. Lots of unnecessary taking.. please discuss to the point without unnecessary introduction

[@VIPFinancialEd]

Trying to make our videos personal and conversational - conversations that go straight to the point aren't too personal... Plus you can always skip ahead if you want.

[@learnsomethingneweveryday1539]

cor blimey, people are so fussy. Can't people just be grateful that there's a free snip of education

[@MK-px3re]

Free life changing knowledge, and you cant wait a minute or two.

[@airjordan777lt777]

Please use proper grammar and correct spelling if you're going to complain.

[@Josef_R]

On the 10 minute video where he tells why he loves HELOCs, he spends the first five minutes repeating why he hates them. I took his advice and skipped ahead till he finally got to the point.

[@jamesbews6049]

Yes there's a risk regarding interest rates but I don't see the Cons to HELOCS being too bad... am I understanding this?

[@RogerBarraud]

Nope. Watch the other vid. :-)

[@nojokeauto]

should we stay away from helocs that advertise APRs? and when you ask the bank about it and ask them if it’s still daily simple interest calculated and they can’t answer my question. should we stay away from those kinds of HELOCs?

[@VIPFinancialEd]

nojokeauto, I certainly would but not sure what your financial situation looks like. Thanks for sharing and watching the video!

[@b_g_c3281]

I have a question hinged on my situation [[ Maybe I didn't recognize your addressing it; if you did, then I apologize for seeming redundant ]] ... ??What if you have paid off your mortgage, but you *need* a substantial influx of capital/$ in order to not drown in debt?? ??Wouldn't a HELOC on a *bought-and-paid-for* home be relatively sensible, possibly even ideal??

[@anonymouse7095]

B_G _C if you have a paid off mortgage but are drowning in debt, that sounds more like a budgeting problem.

[@TheBigStick76]

We originally got it to buy our home without getting into a jumbo mortgage. It is now paid off but have kept as an emergency source of capital.

[@AnaMT1985]

How did that work for you and what exactly was the benefit? Am I mistaken in thinking you need collateral to take out a HELOC?

[@al-b7891]

Not saying that you are lying but you do need positive equity for a HELOC. If you are talking about your first home where did the equity come from?

[@kensaulnier6396]

so i just mortgaged my home for 163,000$ my appraisal came in at 310,000. so would this be good for me??

[@VIPFinancialEd]

Kenneth Saulnier, I believe your situation would work well to obtain a HELOC. As always, we encourage people to use their debt wisely. Having said that, I believe having this Debt Weapon available could be of great benefit. Thanks for watching and participating in the channel.

[@jumpnsathis]

Vip Hi I'm offered open heloc for 123k coz I had equity in home... Is blend and extend better

[@shirleytarver772]

It makes sense, but what about VA equity ls loans ?

[@VIPFinancialEd]

Shirley Tarver, you would have to double check with your VA lender to see if they offer home equity lines of credit. Thanks for watching!

[@jmbal925]

Thank you!!! You just confirmed I was right about my fears

[@VIPFinancialEd]

Michelle Balcarcel, your very welcome and thanks for watching!

[@Chesterd2]

Wait...you hate HELOCS but you had 3?

[@VIPFinancialEd]

Tooledyou2, that's correct. We hate the risks and issues with HELOCs, but we use them with an awareness of their downside.

[@tridoshic1688]

@@VIPFinancialEd Then this should be titled the downsides of HELOC or the I hate the risks of HELOC instead of the click bait title.

[@bza069]

your kitchen is SO CLEAN !!

[@supercanjura]

Do you know why bank of the wesr uses the lowest number of your fico scort to give you a home equility line of credit (helock)

[@learnsomethingneweveryday1539]

what would be the method to play around with a small heloc to begin with while positive monthly cash flow is low. I'm assuming I should be able to get a £4000 Heloc. would I use all of it towards mortgage or half? Then use some savings and the monthly positive cash flow to offset interest. after a year or so, I could repeat the cycle and keep paying £2000-4000 off the mortgage.

[@conservativemacro80]

Thanks for the info.

[@VIPFinancialEd]

Conservative Macro, you are very welcome and thanks for watching!

[@alliewilcox8622]

Is it a bad idea to just use a home equity line of credit to just make improvements to the home to increase the value of it, and that's all it would be used for?

[@VIPFinancialEd]

Allie Wilcox, I don't think that's a bad idea if you're 100% confident that you can repay the money quickly. Keep in mind, if you plan on staying in the home for a very long time then it might be better to just pay for the improvements in cash. The reason I say this is because improving the value of your home only really matters if you're going to sell the home. If not, then paying for the improvements in cash will allow you to save on interest expenses. Thanks for watching.

[@alliewilcox8622]

VIPFinancialEd we've been in our house for 9 year's now, bought low in 2008, and plan on selling in about 3-5 year's, but we have about 80-100k in equity, so we want to kinda make some improvements so when we are ready to list it, all the improvements are done.

[@JcRsJsIb]

Allie Wilcox can you just sell it like it is and get the equity in cash ?

[@josephzupan8953]

First time small heloc refinance trying to get increase to my max on my primary home. Didnt get as much as I thought I should have. Could this just be the loan officer, at this particular bank, personal vibe, if I say, towards me?

[@VIPFinancialEd]

Joseph Zupan, I don't know. Most HELOCs are based on LTV and the banks internal underwriting guideline. Congrats on the HELOC though.

[@silverstonemalik440]

Hi is it good to go for equity loan fix rate but why company is not giving me term and rate without appraisal their jumping to do appraisal which I have to pay why not the private loan company tnx

[@VIPFinancialEd]

Max Malik, my assumption is that the bank is not able to identify what they're willing to lend until they identify the LTV on your home. A personal loan, not to be confused with a private loan, can be an option but the interest rate is typically higher because it's unsecured. I hope that helps.

[@xavierroughley3263]

New to all of these concepts but I watched your long videos and the value in practicing it seems high. What is the best first step for a newbie like me? I really don't want to end up unprepared when another recession hits. Will this still work then?

[@VIPFinancialEd]

Xavier, the best first step would be scheduling a free coaching session with us. Everyones situation is different, so we can help identify the best steps for your specific financial situation in the one on one coaching session. To schedule a free coaching session, visit www.FreeCoachingCalendar.com Thanks for watching the videos!

[@jvolstad]

What do you think about getting a HELOC where the primary mortgage has a cosigner?

[@VIPFinancialEd]

jvolstad, it's very likely that the primary mortgage cosigner will have to cosign on the HELOC as well. If this isn't an issue and everyone is aware of the plan then I see no issue. Thanks for watching and commenting.

[@jvolstad]

@@VIPFinancialEd the Primary lender had no idea. BTW, the HELOC has a interest rate of not greater than 18%. Wow!

[@VIPFinancialEd]

jvolstad, the primary lender probably doesn't care about a HELOC since they're in first position. A cosigner probably does care since they are likely on title to the house. The interest rate was not greater than 18% as a ceiling, but what was the real rate?

[@SaraFJones]

If it was taken away in the downturn what’s the problem?

[@VIPFinancialEd]

Susie Q, then it's no longer available to borrow if need be. Additionally, if a balance is owed then you might have fixed P&I payments instead of Interest only.

[@Giganfan2k1]

Thank you, you actually gave me some things to think about. I am not sure how I feel about using a HELOC to pay off a mortgage, but I was thinking about using a HELOC to buy some of my first commercial property as it takes a lot of red tape out of securing financing.

[@jerrylisby5376]

Sum Arbor why not use investors or a private lender?

[@CYCLEGAMER1]

Not trying to be an a** hole, I am genuinely curious. Why would you get a loan to pay off a home loan? Is that not simply a transfer of debt?

[@BrazosportRoofing]

I got approved for a fixed rate Home Equity Loan. I have 4 rental properties I’ve paid cash for and have had for awhile. I’m getting a Home Equity Loan on my personal Home that is paid for. I want more rentals but I’m kinda clueless as I’ve never had bank help. Any helps in a plan or strategy to get more rentals? Thx!

[@VIPFinancialEd]

Hello friend, you bet. Have you already scheduled a free coaching session?

[@bslorbust]

What bank was that?

[@tessjames6032]

I am a new subbie! This perfect I have been struggling to figure things out and will be joining the program!!! Now I have a home free and clear in need of a roof ...would a HELOC be better for this? Also in my city homes are going for 10-15k needing about 15-20k in renovation, they would be a steal at even 70k? Any advice until my appointment would be appreciated. #superexcited

[@VIPFinancialEd]

Tess James, welcome to the channel and congrats on taking action for making an appointment. It would be best to chat about your questions and more during our one on one coaching session as I would hate to give you some advice right now without knowing your entire finanical situation and goals. Hope that's fair enough and can't wait for our appointment!

[@jdavidpatterson]

How do you have 3 HELOCs? All primary residences?

[@VIPFinancialEd]

No sir. In loose lending environments (AKA: 2003-2007 and now) HELOCs are available on N/O/O (non-owner occupied) properties. Most banks consider only ONE property your primary residence and anything else either second home, or N/O/O. There is of course the technique of 'house-hacking' whereby the goal is to live in a house for only 1 year at a time to gain owner occupancy status, acquire a HELOC during that time, then repeat the process as many times a possible would also lead to several of these Debt Weapons.

[@ronbork8454]

We are definitely NOT in a loose lending environment now. But lenders are not tightening now either and after a 10 year bull market in housing prices, they should be. Just like the Fed, they don't make adjustments ahead of time, only after the damage has been done. But I would love to know the name of the lender that gave you a 1st lien heloc before the market crashed.... most 1st lien heloc lenders only rolled them out a few years ago.

[@ellakuznits6256]

John Patterson and

[@gigglefart2340]

cant you get a fixed rate heloc?

[@VIPFinancialEd]

Giggle Fart, really depends on the lender. Most of them won't but ask as some banks will offer a fixed rate if you take out a certain amount initially like 10k or more. Thanks for watching!

[@SpaZn509]

we're your three that we're frozen first or second lien position?

[@VIPFinancialEd]

One 1st, 2 second.

[@markglaser8081]

The only way a first lien position can be frozen is your house loses 50% value or you miss a payment.

[@VIPFinancialEd]

False. Recommending first lien HELOCs is TERRIBLE advise for several reasons.

[@milinparekh3435]

Is HELOC fixed or variable apr? Is it possible to get HELOC?

[@VIPFinancialEd]

Milin Parekh, it depends on the bank. Yes it's possible.

[@sloppyseconds8301]

I'm about to apply, think in bout going through broker, watta ya think?

[@VIPFinancialEd]

Jeffrey Gaines, I think that depends on your personal situation and how much time you have available to shop. With a broker it might be faster to compare loans and they might have more knowledge about certain loan programs that are available. However, I would definitely ask how they make their money and be sure you don't end up with an unexpected fee.

[@fiorellammr]

VIP Financial Education thank you

[@jdavidpatterson]

Gotcha. I assume ever bank is different? My first HELOC was with bank xyz, and they said on only primaries.

[@VIPFinancialEd]

Exactly right, my friend. Banks operate under different guidelines. Those with products they portfolio and keep in house, often have more leniency with underwriting and can make their own rules to some extent.

[@jdavidpatterson]

Gotcha. So, should I look at more regional banks, or credit unions?

[@VIPFinancialEd]

It varies, the key is understanding how to research it properly and identify the proper capital accounts (Debt Weapons) for the proper purposes.

[@cabininthewoods7326]

I just went to contract on a home a week ago and am hearing about helocs for first time. I'm 54 and do not want a mortgage at 65. Is 10% equity in a home enogh to have a heloc?

[@VIPFinancialEd]

No Michael, 10% is not enough equity to get a HELOC.

[@EstherLDiaz]

Michael. I am not a financial guru but have bought a few homes in my life. Not knowing my options cost me lots of money. If you can do 20% down of home value you will avoid PMI. You want to do that up front. Banks tells you that once you have 20% of equity you can request that the PMI be removed. Not necesarily true. They can make you wait until you have the loan for up to five years or until they feel there is enough equity that you are not a risk. It happened to me! Once you start paying your mortgage you can use the amortization schedule to reduce your principal thus decreasing your interest paid to the bank and many years of the mortgage. Guess what... it's free and given to you at the closing table. Used wisely can help you increase your equity of the home and eventually you could apply for a HELOC to use as a debt weapon. Just beware... Used incorrectly a HELOC can and will become your worst nightmare. Do your research first. You will be glad you did. Good luck!!!

[@chiroyce72]

What do you mean by 'use the amortization schedule to reduce your principal'? I'm thinking your paying ahead of schedule to pay down the principle?

[@jerrylisby5376]

M Royce Brunette yes

[@charliemartinez5266]

Everyday is a different %👆

[@ThematrixrepairInbox]

Can I talk to Banker for a loan or how can I get $250,000 from my Heloc?

[@VIPFinancialEd]

Jake Ferry, if you have equity in your house then you can contact your mortgae comapny or the banking institution you use to find out their underwriting criteria to see if you qualify for a HELLOC. Hope that helps and thanks for watching!

[@debugengineer3782]

Thank u

[@VIPFinancialEd]

Debug Engineer, your very welcome and thanks for watching!

[@richardflosi]

When I go my HELOC they gave me a choice of fixed rate or variable which the banker I worked with said was unusual that I was offered a choice.

[@VIPFinancialEd]

That is not entirely uncommon, but when you're using it as a 'money merge' account, the fixed rate is only established on a set amount. Any new draws are still subject to the variable rates which is the problem / risk.

[@josephgodridge2814]

I remember following you when you had like 1k subscribers

[@VIPFinancialEd]

Joseph Godridge, that was long ago. I hope you've enjoyed the ride.

[@marlenecarreno7893]

Could a heloc account foreclosure a house if I have mi primary mortgage account with another bank and it is pay on time?

[@BradfordStokes]

Yes

[@RogerBarraud]

So what is your plan when the economy tanks (again - or worse :-/), 80% of your tenants lose their j0rbs or have to move away, you can't easily retenant, and your equity drops in your own home because its QV tanks also? [And your biz languishes or you are laid off]? :-/ Oh, and in New Zealand around 1987, we had interest rates on 1st mortgages of up to 28-30% :-(

[@VIPFinancialEd]

Roger Barraud, that's why we pay off our debt as quickly as possible and diversify our assets. Currently we are debt free, own several revenue generating businesses and several properties that can cash flow at a very low rental rate. In a downturn we hope that our market hedged investments will protect us against inflation and that our cash flow generating assets will keep things moving forward. Thanks for watching and commenting.

[@coreyoliver3182]

@@VIPFinancialEd If you were able to pay off your debt quickly why go into debt at all?

[@rubensoria7457]

GOOD TO KNOW

[@VIPFinancialEd]

Ruben Supreme, thanks for watching and commenting.

[@sammykhongloth2040]

I recently got a personal line of credit but it doesn't show up on my credit karma account...will it still effect my credit positively it I'm using it properly?

[@VIPFinancialEd]

Hello Samlith, thanks for your question. Depending on the depth of your credit history, the short term impact can actually be harmful to credit. If you have a long history of positive credit the initial impact will be minimal at most. Over time, establishing a positive track record with this account will be a positive impact, and yes, the contingency is using it properly.

[@laughtoohard9655]

Get away from Credit Karma! Has anyone ever told you how they make money off of what they tell people is a free service?

[@NikkiValentine_]

no please share

[@charlesemrald3457]

Now I can get loan of $200,000 cause I have been approved.

[@ThematrixrepairInbox]

Muhammad Fahd Khan can I talk to banker or how you do it?

[@VIPFinancialEd]

That's fantastic Muhammad Fahd Khan! Thanks for watching and more importantly taking action on your financial future!

[@MrFelipesaboya]

great information. What about fixed rate HELOCs? thanks!

[@VIPFinancialEd]

Thanks Felipe! Good Q: Fixed rate HELOCs certainly provide advantages, but doesn't prevent the risks that come if/when the account is frozen. A frozen HELOC means the previously available 'equity' can no longer be drawn. Typically as a result of declining property values.

[@babyruth5165]

Is this mean that fixed rate is not recommended?

[@VIPFinancialEd]

Thanks for your question BabyRuth! As with any debt weapon, there are pros and cons that need to be weighed against the overall goal. Fixed rate HELOCs can be a good solution for certain goals, but may not be the right solution for others. If you would like to dig deep into your situation and discover the best solutions for you, I'd love to chat with you directly. To do so, visit www.freecoachingcalendar.com and find the coaching solution that fits your needs. We do offer a free one-on-one introductory call as well :)

[@Chesterd2]

Yes... interest rates can go up on a HELOC, but you only pay interest on the balance. I basically use mine as my checking account. My entire paycheck goes into it. If you do it correctly, you will by far pay less interest than you would on a four and a half percent mortgage.

[@loveusoc]

@@Chesterd2 how is that working out? Is your mortgae principle lower?

[@j-rich]

Can you just get a new house and sign up for this or do you have to have a mortgage already

[@VIPFinancialEd]

Absolutely, jr5607. It works with existing and new mortgages.

[@raphaelhernandezs]

As long as u have over 20%equity, the bank will loan u up to 80% total loan to value so if u owe 50k and ur house is worth 100k they'll give u a heloc up to 30k

[@sloppyseconds8301]

How much is your course?

[@VIPFinancialEd]

Thanks for your question Jeffrey! We actually did a video explaining this in detail, you can watch it via the link below: kzbin.info/www/bejne/fpO5faB5q6udpas Thanks!

[@padmagovind2753]

Can retired folks get a heloc from their bank?

[@VIPFinancialEd]

Padma Govind. That would depend on the bank's requirements and if you still have income coming in.

[@Usefullinformationphilippines]

The fed will raise interest rates 3 times this year

[@VIPFinancialEd]

Thanks for the input Thomas!

[@westongeonetta5914]

lol

[@crownchrist]

I just subbed

[@VIPFinancialEd]

Thank you crownchrist!

[@markseven6046]

I got into the wrong business.

[@VIPFinancialEd]

Mark Seven, why do you say that?

[@dudelaser4383]

VIPFinancialEd this is my other account. I said that because i have a high iq and am very analytical. I just know that i would be in a much better position financially if it was my career to know all these strategies. Im doing well in the aerospace metrology field but not good with money at all. Subbed and greatly appreciate your content. I know i can still learn these strategies but ill never know it like i know my field. Thanks again

[@VIPFinancialEd]

Dude Laser, I see. Yeah, I think that's a challenge with a lot of people. We encourage our coaching members to focus the majority of their efforts on whatever makes them the most amount of money. Then, spend their time making sure their financial house is in order. It's all about developing a cash flow system that works for you. Best of luck and hopefully our channel can help.

[@ThematrixrepairInbox]

Can I talk to a banker for a loan on Heloc someone should pls tell me something?

[@VIPFinancialEd]

Jake Ferry, if you have equity in your house then you can contact your mortgae comapny or the banking institution you use to find out their underwriting criteria to see if you qualify for a HELLOC. Hope that helps and thanks for watching!

[@SantaBarbaraAlberto]

How exactly do you get paid or benefit from this?

[@VIPFinancialEd]

Are you asking how we make money as a company?

[@cburnsw]

Great heloc info..

[@VIPFinancialEd]

Thank you for checking out the channel Carl!

[@rajpeter9847]

very helpful

[@JessTess099]

Can you please turn the music down! Or off!

[@VIPFinancialEd]

Terry Owens, thank you for the feedback.

[@MrPatrick1414]

probably more to hate than love. I know this can be a last source of income for those that desperately need it, but interest rates are rising so DYOD before you hand your home back to the banks

[@VIPFinancialEd]

I wouldn't say that. Just needs to be used with caution, like you said. However, our HELOCs have made us a small fortune, so proper use is key.

[@RiaByMe]

Dude. Everything sounded Greek. Is there anyway you could use some less jargons and talk normal human please? Please ... What do you mean by the line being frozen? What happens? Why is it bad for the person getting the loan? Etc.

[@VIPFinancialEd]

Ria Banerjee, when a line is frozen it simply means you can no longer borrow against the line and need to start making regular monthly payments until the account is paid off. This is bad because you can no longer use the line of credit to borrow against, but instead it simply becomes a loan you're paying off.

[@coreyoliver3182]

Don't listen to any financial adviser that says debt is a path to wealth.

[@VIPFinancialEd]

Corey Oliver, I agree. We view debt as a bad thing that should be paid off as quickly as possible. We also believe debt can help you acquire income producing assets that can help you achieve your financial goals. Thanks for watching.

[@coreyoliver3182]

@@VIPFinancialEd It's one or the other. I took over a long standing construction business with solid P&L Statements every year and looking at the data since it started, debt has done it zero favors. I have incredible "opportunity" to take on hundreds of thousands of dollars worth debt and I'm cutting up all business credit cards by the end of the first quarter of next year and switching to debit cards in secondary smaller bank accounts for my foreman to use. Income will be the tool for investing and I will never leverage debt again. It is terrible advice to tell people to buy their investments with credit. I watched plenty of my baby boomer relatives do just that and they all took a bath in 2008, but had to keep making the payments even though their incomes were cut in half. One went bankrupt. If they waited and paid for assets with cash they could have gone through the recession with ease. I'm not paying for any assets with credit just like I would never purchase stocks with credit. You will not survive future economic crashes if you try to borrow your way to wealth. Live below your means and invest in the markets over 2-4 decades and you will have plenty of money.

[@VIPFinancialEd]

Corey Oliver, how did you "take over" a long standing construction business? In my career I've purchased several businesses, several houses, several pieces of land and a lot of agricultural equipment. All of this was purchased with the help of leverage. Nobody has suggested "borrowing your way to wealth." It's not one or the other. You can create a good business model, make good decisions, do the math, acquire assets with the help of leverage, and pay the debt down with the new additional cash flow. I sincerely wish you luck in your business and strategy. If it works for you then that's fantastic. Thanks for watching and commenting.

[@coreyoliver3182]

@@VIPFinancialEd Family business inherited after working for it for 12 years. I also inherited a significant amount of unsecured business debt as well. Debt that was built up due to not counting on the 2008 financial crisis and being tied to multiple finance payments(ie, multiple financed trucks, multiple business properties with loans - some examples). There were 23 years of nothing but good times before that, so unfortunately lot of risks were taken. There were too many employees as well. Every quarter was profitable, but not profitable enough to pay extra people (with comp as well) and make all the payments. Thus, credit card debt slowly grew from 2008-2011. Commercial construction took a bad hit, so the business was unprepared for the burden. I was handed the keys to company in 2013 and immediately cut costs by firing a couple people I needed to in order keep the profits high enough to pay down the debt and the taxes that came with it. After buckling down and recovering for a year and half I hired one of them back. It has been very frustrating seeing my potential wealth robbed every year from paying debt down with taxable income for the past 5 years. I have paid off everything now, but the experience has made me personally very hostile towards unsecured debt in general, especially when seeing what could have been done with that money in the markets. Hell, just what went in to interest payments... Commercial Construction is booming again, money flows in again, and I'm not going to set foot in a bank to finance anything. New trucks will be payed with a check to get the full tax write off, and I run the company from home. I also sold the business properties as well, most at a loss but at least it helps with the tax bill and no more stupid payments. If the company never took on debt to begin with, and just focused on sweetening those P&L Statements, the economic downturn would have had a negligible effect. Also I could have invested that money since 2013 in the market and seen at least a 2x return now. The baby boomer-esque financial mistakes made previously will not be made by me...that mistake being financing crap.

[@sergsoshka9191]

this kitchen is too small to believe his advises are VIP

[@VIPFinancialEd]

Serg Soshka, that's because your measuring cash flow and wealth by the size of my kitchen. Not always the best indicator of a financial picture. Thanks for wathing.