HELOC vs. Home Equity Loan - What's the Difference?

In this video I explain the difference between a Home Equity Line of Credit (HELOC) vs. a Home Equity Loan. What is good about e

Many people believe a Home Equity Loan and a HELOC are the same thing, but they are NOT.

HELOC Explained Simply- How to get approved for a Home Equity Line of Credit

HELOC vs. Cash Out Refi Explained - Which is better?

Should You Pay Off Mortgage Early with HELOC? - The Truth about Velocity Banking

How to Use a HELOC to Buy Investment Property

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[tahirisaid]

HELOAN, HELOCs and cash-out refis should ONLY be used as leverage for investing in rental real estate. If you have sufficient equity in your primary residence and you’ve done your due diligence and the numbers work out on a great deal, a HELOC is preferable as you can pay it off when your ARV (After Rehab Value) on the new acquisition is enough to refinance the total debt. Service that debt from the rental revenue and enjoy the residual net cash flow. Then use it again on future acquisitions. This is what I’m doing.

[rafaelgomez]

🎉Very CLEAR explanation ...appreciated !!!!

[Jamess]

I am leaning more towards a Heloan to take out all the equity out of a property and buy more realestate. The heloan is an installment loan that my property will still cashflow. Also if you do a heloc and you take out all the equity and max it out your credit will take a big hit because you just maxed out your utilization on a revolving line vs just taking all the $ from a Heloan which in an installment loan. If you want to pay less interest in the heloan you can just pay more towards it. Having a maxed out heloc hurts you if you want to keep leveraging your credit.

[goonies_never_say_die]

I would love to see an example of the math on using a heloc to purchase a higher end vacation property, i.e., short term rental.

[TilAllAreWon]

I’m thinking of getting a HELOAN to buy property that I want to build on and make my primary residence in the future. Seems that’s a better idea than a HELOC since I’ll be taking one big lump sum. Thanks for the informative videos!

[JosePerez-pnke]

I really like this "Chanel" thanks!! Are there closing costs to HELOC and or HEL?? Any hidden fees too??

[toneice]

Hello Jay, I just subscribed to your channel….. You have great info. I appreciate you sharing and helping people……… My question is, I have 17k credit card Dept with high interest rate. I can’t afford to pay my mortgage and my credit Cards. What would be my best option to take money out of my house…. Thank you.

[karinakonales]

What is the difference in closing cost amount between Heloc and home equity loan? I know the heloc has low closing clost. Is the Home equity loan closing cost just as low?

[gracetorres]

with a Home Equity Loan can you tap on the money again?

[mikef]

I currently using the HELOC for my garage Jr. ADU conversion and since California allows 2 ADU. I want to get a loan to do my backyard ADU. Would Home Equity Loan work for me or because due to the high amount I am receiving already....it might disqualified me to get a Home Equity Loan?

[richb]

I have no experience in both. Is it a bad idea to use these products to pay off high interest credit card debt?

[notfunnysoham]

How to reinvest in real estate through HELOC?

[josevalencia]

Hey Jay,
Im looking into buying my first small investment property to flip. Cash as downpayment and HELOC for renovations. My biggest question is how do you know which house to invest in and knowing which renovations to make to make the most of your funds.

Thanks

[abhishekparnerkar]

Would you recommend getting a heloan to put money down for a new residential property and use rental income from current one to offset the heloan and the current mortgage and at the same time enter a new mortgage ?