This Is A Good Chance For You To Lose Your Home

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[salmacorrales]

The banks are not your friend.
Keep that in mind.

[robertcollins]

Yep. Got mine called. I was shocked. Equity dipped they wanted their money.

[Nāmarūpa]

I've seen people do it to buy a new car, or even worse, an RV or fishing boat. That's freaking insane!

[Ace-bilu]

I never heard about the annual or biannual call in them. This makes it a huge scam.

[joycephillips]

We never used our house for collateral for anything. And I'm grateful we never had to refinance.

[smoothgbs]

Once again, the old Dave Ramsey adage holds true. Dave is good for people who are bad with money, and bad for people who are good with money.

[AS-uekg]

Thank you Dave! I am currently in about 50k debt and thought about going this route, but, naaah....
Thank you!

[johnmixon]

This is what we need to learn in school!

Let’s just get rid of the English class after eighth grade, at that point in time, you should know how to read and write.

And let’s have a finance class!

[playerzero]

Brutal. Always read everything you sign

[AlishaLauder-zdbu]

I needed mine for a new septic tank so needing to use the bathroom is essential to owning a home. So not everyone uses it to make the home nice or buy new vehicles etc.

[GoodWitch-otvw]

I had a single loan of 3000$ in my life for 6 months 25 y.o. for emergency reasons (my dad was diagnosed with cancer). After a friend explain my all that was specify in the loan agreement, I sold my car, I was working 16hours per day just to close that soiner as possible.
After that I never make a bank loan in my life.

[CarinaMichael-pi]

Love this man awesome knowledge base. Up front with everyone, no bias. I use his books and information🎉🎉🎉🎉🎉🎉

[mromano]

Keep in mind that there is not a single traditional bank in the US that wants to own your home. For those that owned during the 2008 financial crisis, we did have a number of banks that decreased or called on their HELOCs.

[undercovernerd]

Dave here is somewhat correct and incorrect. HELOCs can be callable but reg z sets strict restrictions on when. Things such as selling the underlying security interest or defaulting. They cannot arbitrarily require you to pay early.

[Crowned_Jewel]

Ive never had a HELOC call in my balance. I write off the interest paid on my tax return, use the line of credit to make home improvements then usually sell the house after ~4 years for profit. Rinse/Repeat.

[sawahtb]

It’s usually done to pay off higher interest credit that is bankrupting you. No one does it for fun.

[Vincent-enkp]

Dave, you're right.... I was 1 day late on my mortgage payment after paying it down for 20 years, and the bank called in my note because they could. Had to fight the bank for over a year until I found another bank. Don't trust banks!

[dumpableaccount]

I have a HELOC on my house. We’ve lived in it for about 40 years and the mortgage was paid off decades back. Still have the HELOC because it makes the house far less attractive to mortgage fraudsters and costs me nothing.

[chevelle]

My uncle and aunt lost their home this way. 72 and homeless after living there 43 years.

[Psche]

Your house is NOT your bank or credit card. Get it paid off and own it.