Why Not Take Out A HELOC Instead of Buying A New Home?

Показать описание

Explore More Shows from Ramsey Network:

Ramsey Solutions Privacy Policy

Рекомендации по теме

Комментарии

Having the patience to wait and pay cash is the most difficult thing for most Americans. Seems to be a cultural flaw created by the banks.

robedmund

This was a great question. Something different from the same "easy" questions about getting out of debt!

josephdigi

Even if you upgrade your home, the equity from the old home should be rolled into the new house, not cashed out. That’s the difference. You’re still maintaining your equity whereas with a heloc you are spending your equity.

Julian-zcvm

Never put your home at risk for a new kitchen or a one week vacation...

markbroughton

I love how Dave pushes that button really quickly to cut people off, he looooves listening to his voice

longtimewalker

Im sorry, but if you wait to buy everything in cash, youll never get anywhere on an average like 60k salary with a family etc. His advice just sounds good, but isnt real life. I work for a billionaire who leverages debt in order to achieve wealth. He would be nothing without it.

Shubbyshoinks

Dave not addressing the question because he knows he's caught in a logic trap.

Assume person owns house valued at $300K with mortgage balance of $100K.

Scenario A: sell house, use equity to buy new house for $500K with $300K mortgage. This is Ramsey-approved!
Scenario B: keep house, take HELOC for $100K to build an addition. Total house debt is now $200K. This is NOT Ramsey-approved!

jesusbowls

Good contribution, Kenneth! Dave has trained you well.

gavinv

That's a show on HGTV love it or list it where homeowners have improvements done to their house while looking for a new house . The shows players say for the most part the price to do the remodel and a purchase of another home is basically the same but the homeowners have to decide to keep the newly remodeled house or take the new house . Now you can do many things for 70 grand and it doesn't have to be an addition . You can remodel a kitchen, new flooring, landscape the outside and maybe finish a basement . The list is endless . So the guy has a point especially if you gain equity from the improvements .

stevencole

The only time I ever considered taking out a HELOC was when I had to move for a job and had equity in my current house, and I wanted to use that equity as a down payment on the new house but was unsure if my current house would sell before I needed to pay for the new one.

Obviously once my old house sold the proceeds of the sale would go to paying the HELOC off, the borrowed money being used to lower the mortgage on the second.

Luckily it did sell on the day before I was going to sign the HELOC, unnecessary expense and hassle avoided.

WorldinRooView

HELOCs have good utility. Most people abuse them. I’ve used them to buy multiple properties and assets. If your calling Dave Ramsey your not ready for that kind of move.

anchorsaweigh

That Ken guy was the best part of that segment. Love to hear what else he has to say

avocadotoast

Dave Ramsey: "Take debt off the table."
That makes sense. If you want something, and debt is not an option, it forces your mind to focus on increasing income. Debt is the easier option but it's not the best option. If it's not an option at all, it forces us to focus.

JerryStevens

Cash flow 70 thousand in two years. Ok Dave.

vvitofrank

Dumbest thing I have ever seen lately is advertisements advising people to take out a HELOC to fund retirement.

gjohannes

This way of thinking seems unrealistic for 90% of people. Not enough means.

oswinperezlua

A non Dave Ramsey answer to this would be there is a big difference between upgrading and a HELOC from a cash flow standpoint. A HELOC is a whole second additional payment over a short number of years, a mortgage is spread out over 15 or 30. HELOC likely has a noticeably worse rate too. Both have their benefits and disadvantages.

adamseidel

Debt is like alcohol it can ruin some people's life and must people think they can handle it untill they can't, less alcohol and less debt is always better in you life, and some people quit for life I keep but at minimum.

pablo

Who has money to pay cash for a home. The point of moving is moving up in home. Why would you move then if not moving up in home?

nikolaig

seems like some people forget Dave is teaching Financial Peace and Financial Peace is not attainable with debt

eatpigsnot

Why Not Take Out A HELOC Instead of Buying A New Home?

Gumball | How To NOT Take Out The Trash | The Procrastinators | Cartoon Network

6 Signs You’re Burnt Out, Not Lazy

Jocko Willink: How To Overcome Fear

Why Wreckage Of Titanic Did Not Taken Out After 111 Years Inside Story

Get Out Edit | Not Like Us - Kendrick Lamar (Slowed)

GET OUT! // That's not my neighbor (Check desc for warnings) 200 subs special! 🎉🎉

Deadlift Mistake: Not Taking Out Slack

iCloud Sign Out NOT AVAILABLE due to restrictions on iPhone and iPad I iCloud Sign out Disabled

Kingdom Come - Can't Put Out And Not Take Back

Quavo & Takeoff - Not Out (Official visualizer)

Why should we brush our teeth??? Educational Video for kids with Ryan!!!

#pov my parents found out, that I’m not the innocent boy anymore…#shorts

Barack Obama takes on 'woke' call-out culture: 'That's not activism'

My dog would not get out of the way 🤣

THE 7 SIGNS YOU'RE BURNT OUT, NOT LAZY (Change Everything In 2024)| Rangan Chatterjee

Ed Sheeran - Thinking Out Loud (Official Music Video)

What If We Drained the Oceans?

if you ever see this while driving do not get out of your car, keep driving and get away FAST!!

How To NOT Take Out The Trash | The Procrastinators | Gumball | Cartoon Network

Fixed: Sign Out Is Not Available Due to Restriction - For Apple ID Sign Out on iPhone iOS 15

GET OUT OF THE BOAT | Fear Not And Step Out In Faith - Inspirational & Motivational Video

Home Alone in a Rush

Do NOT Mess With This Man

101 Ways to Ruin Your Friendships in Minecraft