When Do I Pay Off A Home Equity Line Of Credit?

Nathan has a HELOC (Home Equity Line of Credit) and asks Dave where in the Baby Steps he should pay that off.

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[davidn.waldropcfp]

I remember leading up to the last housing bust, every banker's first question to the customer was "Have you opened your HELOC yet?" It was always phrased in a way that made the customer feel as though they were missing out. Those equity lines were soon maxed out and you know what happened next.

[horsepowers]

Dave says $194 but math says $164 and the caller agreed with Dave's 194 number. I'm baffled.

[LightGesture]

So wait, his HELOC is maxing out and he owes 84k on his house?

[raytwal]

I need help from the chat. I called the show numerous times with no luck. I have a rental property paid off. I live in a different house with mortgage. I have $120, 000 equity. the question is should I sell my paid off property which is worth about $70, 000 or take home equity line of credit to renovate the garage and make it a livable space and rent it out. My net income from the rental property is $600 a month and I know I can get $1, 200 a month from the new construction I'm planning to do. The project will cost me around $20, 000 and put the rest towards the principal.

[zacharylutz]

Can chat help me out with a question?

Im 25, my works retirement/pension provides me ~12.5% when i put in 4%. I work for a state government so my retirement/pension is not like everyone elses retirement. I have ~200k worth student debt and 48k salary right now (lots of room for promotions at work once training is done, and continued raises each year). Would this be an exception to keep in my 4%, or should i be following the plan and put a hold on retirement funding?

[danielbustos]

House for 190k?
Damm that’s a dreams dream in Southern California
4 bedroom 2 bath in SoCal around 700k

[gebhardt]

Wait. He owes a total of $164, 000 on the house. He said the house is worth $190, 000. That's not upside down.