Is HELOC a Good Idea? | Pros & Cons of HELOC (Home Equity Line of Credit)

What is a HELOC? is HELOC a good tool to pay down high-interest debts? Can you use HELOC to fund your early retirement?

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⏰ Table of Contents ⏰
0:00 HELOC Explained
6:02 HELOC Pros and Cons

#FIREPsyChat #FinancialIndependence #HELOC

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Disclaimer: I am not a financial advisor. I am solely sharing my personal experience and opinions. All Strategies, tips, suggestions, and recommendations shared are solely for entertainment and educational purposes only. There are financial risks associated with investing. You must conduct your own research and due diligence, or seek the advice of a licensed advisor if necessary.

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[idontusegmail]

You really broke this down in a way that people can understand it

[generay]

Thanks for the info. Very easy to understand. I’m retiring in 4 years and was thinking of a HELOC for home improvement and bills. After watching this video I’m gonna pass on this and work harder at paying in cash.

[Romenet]

I thought this was excellent. Especially at the end with the Pros and Cons. I have watched TONS of videos on HELOCS.

[epsyuma]

I tried a home equity loan with my mortgage company. I was asking for 35k. They wanted to redo my entire loan to bring the 35k into the total mortgage balance. Then they wanted closing costs of $7600 and a $320 startup fee, and to add insult to injury, they wanted to increase my APR from 2.5% to 8.5%. To hell with them.

[taniamatthews]

Thank you for your help. I lost my job and have debt and almost got a HELOC.

[igonz]

Those are some great questions at 2:44 . I’m definitely interested in doing a heloc and this video is very helpful. Thanks bud

[Noeruiz]

Looking to make some home repairs. Over a 3-5yr period. Heloc sounds like a nice option. Make the repairs and pay off the debt asap. Without having to spend my savings all at once.

[Askandy]

In other words, like any other credit issuer. They charge you to use your own money. Not knowing anything about this. Based on your explanation of this. One would give INTEREST in their property to another. It’s bad enough that mortgages are what they are. Then to add something like this into the mix. Just spells lien on your property to me. Great vid

[howiewynn]

Love HELOC. Best tools to flow moneys & create new moneys.

[worldchanges]

Bank won’t explain like YouTubers (you) but just quickly send requirement documents to sign; after listening to this, I just sell my house, get the cash and pay none of them fees to the HELOC bank

[vastibro]

Thank you for explaining this.. they seriously don’t explain it to you, I assumed it was similar to just refi to pull your equity but no way I’m doing it just to be charged interest for it

[kimberli]

My dad wants to take out a HELOC on our home as his brother who just moved to the states (from Mexico) wants to get a home. My uncle doesn’t qualify for a house on his own as he literally just got here less than 3 months ago and although he came to the country with around 25, 000 saved, that still isn’t enough to get a home. So my dad was trying to apply for a home for him, but he was only approved for 300, 000 but they would need to make a 50 to 70 K down payment, and obviously that’s a lot of money so now they’re considering having my dad get a HELOC in our property. It was bought at 147k, they owe 80k, and now it’s worth 365k. I keep telling him it’s dangerous to get a loan especially a HELOC for his brother, but it seems like he doesn’t care and is going to go forth with it.

[OPDNETWORK]

Thank you for amazing video. Great information.
Debt is dumb unless he cash flows so I am not going to continue to play these borrowing games

[choosetoshine]

Excellent content and informative! New subscriber. ❤

[AB-fckl]

Great video! I'm looking at a HELOC to do some home improvements and you made some good points in this video. Thank you for posting.

[benny]

Thanks for the content. I'll probably go with the Home Equity Loan instead.

[TeslaBoy]

Thanks for open my eyes on a heloc obviously is a sweet trap bcz is a credit card better I open a regular credit card without put my roof in danger if something happens on the road

[wesautran]

what are your thoughts on using a HELOC to finance renovations in an historic home to improve energy efficiency (new HVAC, new attic insulation, window inserts, etc.)? I a have a drafty old house with 25 yr old HVAC system, and my utilities are through the roof. I'm estimating needing 50k to do this work and estimate saving $300 a month (gas & electric bills) after energy improvements.

[iezfxlo]

Hi. Helpful video. Thanks. What do you think of taking out Heloc to fund an rental property? Thanks for your reply in advance.

[johnnyboyvan]

With huge interest rates it is the demise of many home owners...oh and it can be called at any time!! 😮