Looking to learn more? Check out these related articles from Ramsey: HELOC: What Is a Home Equity Line of Credit? - bit.ly/RamseyHELOC 10 Money Traps to Avoid - bit.ly/RamseyMoneyTrapsToAvoid How to Create a Home Renovation Budget - bit.ly/RamseyHomeRenoBudget

@AlanHMartin

3 ай бұрын

Jade made an epic comment at 5:06 about the 3-6 Months Of Expenses Emergency Fund coincidentally being sized large enough to cover the homeowners insurance deductible for storm damage repair. I'm not foolish enough to think that is the core rationale for the 3-6 month figure, but (not having read the books or attended FP) I've never seen that Ramsey Rationale before. If that's not a footnote somewhere in the Baby Steps, you should add it to instructor manterials. And give her a raise for mentioning that insight.

5:30 "An emergency fund turns a crisis into an inconvenience." So true.

@commonsense-og1gz

Жыл бұрын

you need a strong job to fund it.

@satturatedphat

2 ай бұрын

​@@commonsense-og1gzwrong... that is 100% WRONG. LOOK UP VELOCITY BANKING.

Our HELOC felt like a boat anchor… Paid it off several years ago and I will never ever do it again.

@ARKenMan

Жыл бұрын

yeah, I discovered I don't like it either, gonna go crazy to pay this bad idea off.

@carolinabrown8336

Жыл бұрын

Same. I'd rather sell a kidney than to ever get a HELOC again.

@ConsensusX

11 ай бұрын

@@carolinabrown8336 You know any good brokers?

@DavidMFosterIII

6 ай бұрын

Why can you explain ?

@Pedroza1023

5 ай бұрын

because they didn't use it properly that's why. You use it for a quick flip and quick flip only. like me i have a 500k HELOC but I ONLY tap into when im paying cash for a fixer upper. Example - I purchased a fixer upper for 300k cash using my HELOC, then put 75k into it, then got it reappraised for 470k, then I did a cash out refinance, they gave me 80% of that 470k (376k), used that 376k to pay back ALL the money I withdrew from my HELOC and now I basically have a free newly renovated rental house with 20% equity in it with ZERO money out of my own pocket and now I just repeat that process. Be smart about it and don't make dumb moves like these fools and you'll be fine. and definitely don't listen to this Ramsey clown.@@DavidMFosterIII

Yes, "HELOC" is just a nice, sanitized, friendly term for a second mortgage. It's kinda like calling a plane crash "An aerial vehicle ground incursion."

@Nolaman70

Жыл бұрын

I have a HELOC, it's not a second mortgage, I have no mortgage.

@Whoreallyknows

10 ай бұрын

It’s not a second mortgage

@defendingthefaith.7889

9 ай бұрын

For those who don’t use it correctly.

@gofigure84

3 ай бұрын

This is partially correct. It is a second mortgage combined with a credit card. It's money borrowed against your home that you have to pay back with interest.

Main sewer line to my house needed replacing within the first few months of buying a house. It was $8k, but thanks to a good ole fashioned emergency fund, I just wrote the check. It was annoying, but the annoyance wore off very quickly since I wasn't making payments.

@alrbredwall

Жыл бұрын

Amen! Sorry this happened to you but glad you were smart about this.

@tubenachos

Жыл бұрын

That sucks 😕

@KlayFennema

Жыл бұрын

@@alrbredwall Thank you! Yeah it was one of those unfortunate impossibilities for an inspector to catch.

@kevincooper3656

Жыл бұрын

8k lol what if you needed 100k? You got that in savings too?

@genxx2724

Жыл бұрын

@@KlayFennema How was it impossible for an inspector to catch?

This is what drives me nuts about Ramsey - he speaks about a HELOC as if the only recourse is to pay off debt. Many people use it to pay for upgrades to their house they could not otherwise afford. If you are doing renovations that potentially increase the value of your house, a HELOC *might* be a wise investment if the only other option is a loan or credit card. Speaking to the pros & cons of that would have been a much better use of time.

We’re using our HELOC to consolidate debt and pay it off faster with a lower interest rate. The position we’re in now, we’re in about 20k debt including student loans, behind on bills and struggling to save…a HELOC is our way out from underneath it all. The payment for the HELOC is about 1/8 of what we pay individually on our debts each month…

@joncena168

4 ай бұрын

I’m right about there to do that also!

@gofigure84

3 ай бұрын

Can't snowball with 1 payment. That's the downside. Hope you aren't making minimum payments.

@pdxmusl1510

3 ай бұрын

Yeah. I mean I don't know your exact situation. But... Dave is adamantly against all debt to the point of being irrational. The problem with what you've said is you've only talked about the payment. What matters is the time to debt free and the total amount to debt freedom. The advantage of the snowball method is you start to get more free flowing money. Yes, your still using it on the debt, but if an emergency happens you can pay the minimums instead and handle the emergency out of pocket likely. Whereas your 1 heloc is there until you pay it off. However yes... if you consolidated high interest debt like credit cards you might pay less overall. But again.. that period of time of becoming debt free is longer. You not really seeing that progress. Instead it all concludes at the end.

@GrantSchinto

2 ай бұрын

@@pdxmusl1510 Interesting point about Dave being "adamantly against all debt to the point of being irrational." I'm not going to comment whether he is or isn't, but I bought my first house 20 years ago and while saving up for the down payment I told a friend of mine who was like, "What are you waiting for???? Why are you still renting??" and I said I wanted a large enough down payment to have a manageable monthly mortgage payment. When I said I wanted a 15-year fixed rate mortage and how ideally, I'd even wait till I could simply buy the house outright with cash he went totally of on me: "That's RIDICULOUS!!!! The bank is there to help you buy what you can't afford!!!!" I guess I was pretty biased, having had listened to Dave's radio show 4 hours a day, 5 times a week for 3 years at that point ...

@JayJay-jx3zg

Ай бұрын

@@pdxmusl1510I feel like I don’t agree with that 100%. Say you racked up debt on multiple cards and the interest rate is 24% per card. The minimums added up are stretching you thin… a personal loan is. 10% over 5 yrs and if emergencies for the house or car pop up in that time, what do you do? That can snowball. What’s a better idea then?

Wait so I get to pay interest on my mortgage and once I have gained equity on my home and I can take it back out in a loan and pay a worse interest rate on it again? Where do I sign

@gunkshunter2519

Жыл бұрын

Lol well put

I personally think, HELOC especially if used and utilized correctly can be to your advantage, my parents for example, when building our home used all HELOC to build our home. All in all. Put in about million towards the home and now it’s assessed at 3 million, with the basement suites rented out. Another example is, they bought a rental and they were short on the down payment so they used 70k out of a heloc to get the down payment. Purchase price for that property was 800. Now also assessed at 1.4. I think HELOC for the majority of people is horrible. This is also when interest rates were really low and they locked it in. They only pay 1.75% for their heloc. And they paid down most of it, as they always put more than the monthly amount as they want to aggressively pay it off.

In the process of getting a HELOC. Thanks for the insight however. Loans = keep you in debt forever. This is what the banks want. Heloc isn't for everyone, but it can work and is far better to get this 'mortgage' then a loan.

I used a heloc in a crisis of loosing a job and paid interest only instead of principal and interest and I got thru the crisis. He’s wrong

I like Jade - you both work well together and have chemistry… keep it up.

@bensondentalassociates8690

Жыл бұрын

She’s my least favorite

@foodmens

Жыл бұрын

She's nervous and no there's no chemistry she has a different personality. Everything seems forced from her end

@foodmens

Жыл бұрын

Listen to laugh, it's sooo fake

@linuxsurfer2002

Жыл бұрын

She's my favorite of the personalities

@tmanwheeler8270

Жыл бұрын

My least favorite

I disagree with the insurance sending you money right away. I was in a hurricane and my roof got damaged. It took them a while to come and see what was wrong; one can't wait with a damaged roof when it keeps raining.

@lynnjoseph7359

Жыл бұрын

Maybe you weren’t the only one with a torn roof during a hurricane.

Jade and Dave sarcasm multiplying off each other 🤣

@shaunfogarty3020

8 ай бұрын

yes, it's smug and a turn off

@leonardorodriguez6219

2 ай бұрын

@@shaunfogarty3020 I agree

@john2.012

2 ай бұрын

@@shaunfogarty3020Dave and Jade really come off as pricks. She didn’t even know how a HELOC worked in terms of the interest. Then he explains it and she makes fun of people out of her ignorance.

We Inherited a home with a HELOC. We have been paying on it like crazy, and getting close, but just paying the minimums will take 30 years to pay it off. It like 90% of the payment goes to interest. The interesting thing is they can call the note on these loans at any time, even if you are not behind on your payments. The were trying to get us to put the HELOC in our name, but our attorney said we don't have to. The have to honor the loan from the immediate family member that inherits the home.

My advisor told me the same thing, get a heloc just in case. I refuse and decided to save at a gazelle pace.

@teenyverse7707

Жыл бұрын

Did you get a new advisor?

@evelynherrera-gonzalez1474

Жыл бұрын

@@teenyverse7707 right!! Lol

We had an emergency situation where we unexpectedly had to get our roof replaced and the damage was not coverable by insurance. We had to finance the project, and the finance company the roofing contractor uses (Foundation Finance) is charging over 11% interest on the loan. What is our best option for borrowing elsewhere at a lower rate to get rid of this 11+% loan in exchange for a lower rate as we strive to pay this thing off as soon as possible?

One can get rich using HELOCS to buy and rent out properties.

When I redid my kitchen and the floor, I paid cash. Because I think it’s very weird to borrow money for home upgrade.

@jimroscovius

Жыл бұрын

We did the same. We recently completely renovated our downstairs family room with CASH!! That's what we use our savings account for. Then we build it back for the next project, or vacation, or a cruise, or whatever.

Arent you required to take out a large chunk of money for a fee just by opening the heloc at all?

I want to sell my home(mortgage free,fully paid off) to buy a bigger home outside the major city i live in. Me and my partner want to start a family so we need a bigger home and right now in the market there's less competition so it seems like its a better time to buy. Spoke withe 2 mortgage brokers. One said to get HELOC and LOC to pay for new home. The other broker said just HELOC and the rest pay with cash. I have the cash in the bank, plus extra. Im not shy on cash. Homes near my current home are taking a month max to be sold, according to listings. I want to go with just LOC but im no expert. Any thoughts or guidance? Current home value $1.2mil, new home $1.2mil.

Many people use a HELOC in place of an emergency fund, which is not advised. FYI, you will inevitably experience emergencies. You definitely don't want to pay interest on an emergency expense.

@MortgageMasteryTheater

Жыл бұрын

Especially if you don't have a plan to pay it back!

I wish I knew about the heloc many years ago. I didn't do I took out a home equity loan to do the necessary kitchen repairs. Then I lost my job right after.

You are putting your house on the line. That's where we need to draw a line and Not take one out! Thanks for the information.

@satturatedphat

2 ай бұрын

Look up velocity banking and stop listening to boomers. They live like the poor. The rich live on debt... almost 100%.

But what if I'm not using the hello to update my home? What if I'm using it to pay off big chunks of my mortgage? Does the interest accrue differently?

@rwelsh1829

3 ай бұрын

I really would like an answer. I seems like your paying less in interest even if the HELOC interest was double.

Dave reminds me of my stubborn old parents. He knows of only one way to do things and then thinks there's absolutely no other way to be creative. He probably still writes out a check at the grocery store because it's the only method he knows that works. Iv seen a lot of people jump start their real estate empire or business with a heloc and became multi millionaires. He's the definition of closed minded and unable to think outside of the box. I bet he doesn't practice most of the stuff he teaches. But teaches what sells.

@defendingthefaith.7889

9 ай бұрын

Dave is still in the 60s

@stldweller

8 ай бұрын

No one agrees with you, they just don't want to waste the keystrokes to tell you. For every instance you could think of where someone was lucky enough to flip heloc loan into millions of dollars There are 1000's others who went bankrupt, lost the house, lost a job, foreclosed and led to bankruptcy. You don't know everything, listen up Dave is very wealthy and practices the participles he teaches. You are not that. stop giving advice I'm calling BS on what you said also. "Iv seen a lot of people jump start their real estate empire or business with a heloc and became multi millionaires"

@andyhwell8419

8 ай бұрын

@@stldweller lol

@walterg74

5 ай бұрын

@@stldwelleryep. Agree. I'm not saying there's only one way. But until "random internet guy" shows us his net worth, he's just another idiot talking BS....

@pdxmusl1510

3 ай бұрын

Actually dave does follow his own advice except one point. He won't yell at you for getting a home loan. But he didn't get one for himself. He outright refuses any debt. It's at the core of his philosophy.

Well, glad to see Howard Stern paved the way for Dave’s approach 😢

Any tips on how to deal with home insurance companies? We have a home owner insurance that's been trying to low ball us on tree damage to our home.

@hbarudi

Жыл бұрын

State farm offers great customer service compared to other insurance companies.

@JohnJohn-wr1jo

Жыл бұрын

Best tip is stick to your guns, get multiple .estimates and if your lucky you might get closer to your number. Unfortunately insurance never ever ever will pay out 100% towards damages.

@JohnJohn-wr1jo

Жыл бұрын

State Farm what.....

I am glad I found Dave Ramsey in youtube before buying a house. The baby steps is now my financial guidance.

I never understood the idea of using a home equity loan. So I'm getting a loan for the equity in my home...so your charging me for MY homes value? That seems stupid.

Learned a lot thank you Dave.

I agree with everything except 1 thing. Show me an insurance company that would actually help you when you have storm damage because they dont exist. They take forever. They evaluate every angle and clause in there contract to weasel out of payment. Theres an entire industry of lawyers that continually sue insurance companies so they will pay what is due. Honestly its so bad i kinda wish the insurance industry just didn't exits. I have never personally met anyone where an insurance company actually helped them in there time of need. Although i know there out there and probably will reply to this comment. But imo.. even though i pay it. And im in no way telling or advocating anyone cancel any insurance the have. I just think insurance is the biggest absolute worse use of money. Period. Even worse than loans you always freak out about. At least when you pay interest you get something out of it. And yes.. in a true emergency you might be glad you had insurance. If they bother helping you. Last year i had storm damage at my house. I had luckily before and after shots. Our storm made national news. Etc. There was no reasonable way anyone would look at my house and not conclude it was storm damage. And yep. Insurance denied the claim. I actually would have used one of those lawyers but its just not enough to bother. It wasnt a high dollar repair. Emergency fund to the rescue.

a significant decline in home values could cause your lender to reduce your line or freeze it - as some homeowners learned during the Great Recession.

My mother is 81 And still paying off her HELOC

@defendingthefaith.7889

9 ай бұрын

She pays the minimum payment then.

What about a shared equilty agreement in a divorce buyout?

I’ve been in construction and maintenance for many years. For those of us who are handy and know what you’re doing I just used bonuses and extra money that came in and used it to purchase materials for home improvements. No loans, no contractors. Pulled any necessary permits. Sweat equity. If I decided I wanted to add on I’ll save up for it. I can’t believe people would borrow money for a yard.

Yep I paid a downpayment for a rental property 15 years ago from my HELOC, paid it off ASAP and now own the rental free and clear. Clearly a bad choice?!

I love Jade!!!! Great collab with Dave ❤🎉

Yep! I have $102k in equity and I refuse to touch it!!!

Don’t use a heloc to fix your home use it to add passive income and put your equity to work , you only pay interest on what you use but it’s goo bro have instant access to your equity to buy an asset in a instant

A HELOC I never used with a bank that no longer exists (GMAC) on a house that has been paid off for years had a lien on my home I only found out about when I tried to sell. I had to put up over $90k in escrow to cover a non loan to close the sale and then wait until this mess got sorted out.

But cant you use an HELOC to pay off your monthly bills and put the rest of your income into your mortgage to pay it off faster? That way you pay off the much bigger loan and only have to worry about the small one

Loan and line of credit are not the same. A home equity line credit (HELOC) is not a mortgage, Dave is 100% wrong on this. A a home equity loan is a mortgage. A HELOC works like a credit card, you only owe what you spend on it. You can treat it like a checking account by automatically adding your income into it, this is the greatest benefit of a HELOC because when your income is deposited it counts as a payment. You can't do that on a mortgage. Additionally you can withdraw cash and pay other bills on a HELOC. The interest on a HELOC is calculated as the average daily balance * the interest rate divided by 365. This is not a scam, this is a legitimate way that people pay their mortgages off. You can literally decrease your mortgage by tens of thousands of dollars over a few months. A mortgage will not let you do that because you pay all the interest upfront.

Two of my friends have used this. I am not sure if this benefited them. I am curious to ask, but don’t want to ask about money.

@peters.6343

Жыл бұрын

It depends on how you ask them about it. You could just ask I know you got a HELOC and was wondering if you thought it was a good idea. Maybe tell them a little bit about what you were thinking on it.

So Dave says stay in debt longer instead of using a Heloc for the right purpose. And getting out of debt faster.

HELOC = Paying the bank interest to borrow your own money.

@austintomkewitz3981

Жыл бұрын

401k loan over HELOC

I opted to get a HELOC, only used it twice so far for home repairs. So far no issues, pay it off monthly or whenever I feel like it. I would not suggest using it as an emergency fund. You should have an actual emergency fund as an emergency fund.

@jimroscovius

Жыл бұрын

@@RustyZipper Exactly!! SAVE for those things instead of giving the bank money.

@MYTMIC

Жыл бұрын

@@RustyZipper depending on how you pay it back (large chunks) the interest is irrelevant

I agree with being debt free. So let's suppose you have established the 1K emergency fund. Now while paying off debt you have a 3K emergency. How should I fund the other 2K? All I have is 1K.

@LouThaEnergy

Жыл бұрын

Save more lol 1k is nonsense.

@fabbz94

Жыл бұрын

Could you rephrase the question because I'm not sure what your asking. Are you asking how you save 2k?

@goldrush7293

Жыл бұрын

@@fabbz94 I'm saying if I only have a 1K emergency fund and my emergency cost 3K do I need to take a loan for the other 2k or what?

@terrencejenkins7995

Жыл бұрын

@@goldrush7293really depends on the emergency. But try to avoid going into more debt if you can and save up the rest to take care of the emergency.

@Mjixa

Жыл бұрын

you got cash flow as in " income ", you go from the 1k as a reserve then throw anything else at your debt. Then, build up your 3-6 months of emergency fund.

I have two home equity loans at 5.9% that are FIXED for 10 years

@Sizukun1

Жыл бұрын

Are you boasting your debt?

@Nolaman70

Жыл бұрын

Mine is fixed as well.

If your home is all paid off...it makes sense.

What if it's an investment property with no mortgage?

@Josh-ii1eq

4 ай бұрын

That's my position now. 300k property, no mortgage. About to pull 75k from it and have a tenant lined up to pay $2,250 for rent.. Going to pay off my new house within 3 years and repeat.

@Josh-ii1eq

4 ай бұрын

I also have to add, after all our bills (new mortgage+ an extra $1,100 month) we have minimum 6k left over for emergencies/vacancies

Glad they explained to Jade what a heloc is before the episode

So are interest only first mortgages lol

Its not leveraged. It's a stupid loan. I'll never use it because I have an emergency fund.

@eunicebernard3054

11 ай бұрын

Well said😁

You can get a fixed rate HELOC. Don't use it for simple home improvements or expensive trips. Use it for things that exceed your emergency fund. Like say your insurance is paying for a new roof, but you want to pay the 15k difference to get a steel roof that will never need to be replaced. Be smart with it and you will be fine.

@homeaudiobasics

Жыл бұрын

Heloc only gets paid on as you use money from it, unlike a second mortgage that needs repayment the second it's active.

@Nolaman70

Жыл бұрын

Mine is fixed rate.

@MortgageMasteryTheater

Жыл бұрын

Seems like a really wise approach - I like it!

@m.b5777

Жыл бұрын

Why rely on debt for emergency. Save money for emergencies. You don't want to go deeper into debt in an emergency

@donaldricher8815

3 ай бұрын

​@@Nolaman70how do you use your HELOC

Some people can not save up for emergency. When they raise kids, the money goes so fast and nothing is left.

Nothing wrong with HELOC. I have a 50k one with fixed rate. I carry a zero balance but it's there if I need it. I will most likely use it for my next rental property down payment. It's a great tool to have in your tool box. If your not smart with money then just stay away from it.

@JL10007406

Жыл бұрын

Thats fine, but it isnt in alignment with the Baby Steps.

@Nolaman70

Жыл бұрын

@@JL10007406 true but I'm an adult.

@JohnBeezy3

Жыл бұрын

@@Nolaman70 My man says “If Dave says jump off a bridge, well by golly, I’m going to jump off a bridge.”

Emergency funds are a nice way of saying you don't want to commit to paying against principle.. Saving money without commitment to your debts is goofish. Like a dollar waiting on a dime.

I'm confused on what's going on in this video and in the comments. Are people confusing HELOC with Home Equity Loan? HELOC is more like a credit card. So the same principle applies. A credit isn't for everyone, so you shouldn't use credit if that is something you struggle with.

Unfortunately I got one but I’m paying it off once house is paid off, mine is fixed not variable though

They are dangerous.

Well i understood what they saying but if i have an emergency, dont have an emergency fund because you dont make that money and dont have the time to work 3 jobs cause you got kids....you do what you got to do. They seem so out of touch with the reality because they make so much money. Insurance companies are not in a hurry to spend money. Yeah we all dont have Ramsey money.

And yet where is the buy a house on the 7 baby steps? Get out of debt by reducing interests with a HELoC

Jade just like Delony goes overboard. As does Dave with him screaming, raising his voice.... the show is not what it use to be

What if I use a HELOC to improve my house then sell it?

Accelerated mortgage

Any thoughts on an SBLOC instead of a HELOC?

@MrJimmy3459

Жыл бұрын

Thoughts on debt instead of debt?

@madesquire2796

Жыл бұрын

@@MrJimmy3459 I guess the portfolio generates income that helps pay off the debt vs one’s own home, which doesn’t necessarily do that. The objective would be to not sell the securities and avoid realizing taxable capital gains.

Jade is BY FAR my favorite of the new personalities you're trying out!

The only thing worth using this "heloc" loan for is transferring your student loan into it, but you still have to pay despite the interest rate changes it should be less than the student loan interest rate.

@kohiba666

11 ай бұрын

Not for investing?

This is actually not true. They're typically indexed to prime rate. (ex. prime+1% or Prime+2%) They can't just jack it up 10% because they feel like it. Some banks also offer Fixed HELOC options where you rate stays the same and will not fluctuate at all.

@MrJimmy3459

Жыл бұрын

Still a terrible product.....

😂😂😂😂😂 leverage in Debt darling lol

Ever get the feeling "Home equity line of credit" it was turned into an acronym word just so folks would be one tiny step away from having to keep hearing and saying the word "credit?" Even the most financially illiterate/ignorant/lazy know that credit and debt walk hand in hand.

We need jade and Ramsey collab more . They are in synch. Great collab

@myownboss1

Жыл бұрын

Yes! I also like when Jade and George are together; I like them a close second to Dave and jade….

Thanks for tell me what HELOC stand stands for.. I had to look at up few year back.

Pretty sure BMW and Mercedes would go out of business if people stopped using HELOCs.

@amireallythatgrumpy6508

Жыл бұрын

That wouldn't be a bad thing.

They can be fixed rate or variable. I agree that variable is very dangerous.

I have an older home and all updates have been slow, but it’s getting done

I mean an obvious response. Your a anti-debt guy. But what if you ran into a financial issue. One so bad that you cant pay your current mortgage even. You would lose your home pretty soon. But if you had a heloc with a 0 (or very low) balance for emergencies, it could extend that foreclosure until you get back on your feet. It could buy you a long time. If you never get back on your feet (for whatever fail of a reason), at least you bought 2+ years before foreclosure by paying mortgage 1 & 2, with mortgage 2.

LOL love Dave

22:22

0:44 This is the scariest thing I've ever heard. I'm not saying to not leverage debt if you know what you are doing... but if you know what you are doing you NEVER get a loan with variable interest rates, especially one that you can't track how it's calculated.

She lock 🔐

1:30 "At what cost?" Sounds like no one knows until the banker picks a number for the day.

✝️🙏

Her confidence is refreshing compared to everybody else other than Rachel walking around on egg shells around dave

@disco4535

Жыл бұрын

Just sounds like another "yes man" that parrots him anyway. Might as well just have Dave by himself.

@christined4842

Жыл бұрын

She doesn’t parrot him at all. She has her own thoughts and ideas. Why be so rude

@reneb6702

Жыл бұрын

Agreed, poor Christine gets lost with him. Half the time I don't know she's there till I can see her.

@christined4842

Жыл бұрын

I’d love to see any of you give it a try so we can critique you

I didn't even know what a HELOC was until I started watching clips from this show.

I have been proposing that they give the more masculine sounding words a feminine twist. Shelock is a good one, my personal favorite would be heroids.

I have a fixed rate HELOC @ 2.70 percent. You can take a lump sum out in a fixed rate. I still have this money and am earning 5 percent interest on it (still below inflation). I am waiting for a huge down turn in the market (20-30 percent). I get this is math and this is not the kind of behavior to earn wealth. Assuming I wait for a 20-30% correction, i don't see the problem with dumping into bonds and s&p index as i can afford the monthly payments and have an emergency fund and am already saving for retirement.

He lock me in. Heloc 😊

@tubenachos

Жыл бұрын

😆 well done

Yaaa then I'm more broke when I use my savings I guess I'll never be rich working and working

All the different ways to say the same thing: borrowing money you don't have...

2021, everyone got stimulus checks. That’s why they redid their yards or whatever

I enjoy the Ramsey Show, but the intersection of snark and sarcasm makes this my least favorite hosting combination.

@christined4842

Жыл бұрын

Well Ramsey is snarky that’s why people love him. He’s funny and honest

@shaunfogarty3020

8 ай бұрын

he's smug and small minded. he's a hammer and thinks that every problem is a nail.@@christined4842

@brasilchris06

5 ай бұрын

Give me George and Rachel any day

you can have a 1st lien HELOC and switch between variable or fixed rate lol for a mortgage refi its a perfectly acceptable option, especially if you're looking at $0 closing costs

@alrbredwall

Жыл бұрын

Thanks brokie

@Batbych

Жыл бұрын

@@alrbredwall you’re welcome scrub

HELOC = Home Equity Line of Craziness

HELOC just buys u time ..Like bridging finance

Everytime people take out money from a HELOC people think your wealthy and they don't even know what payments you are paying 😂

@eunicebernard3054

11 ай бұрын

😁😁😁😁

Meh, I used a HELOC to build a garage with an apartment above it. But I had the money. I just didn't want to burn through any cash at that time. It was at 2.5% fixed and it took me five years to pay back. This was a while ago though. It worked out well. My teenaged daughter lives in it now. She comes down and helps me work on my cars when she hears me cursing. Worth every penny to me. I think people watch theses home shows too much and get a little too stupid with HELOC'S. They can't work if you are financially responsible. Most people aren't.

@weswest8666

Жыл бұрын

Heloc seems fine when it is for buying something that appreciates but rates changing on helocs can be scary.

@MT-yx5cu

Жыл бұрын

So there are fixed rate HELOCS? And the story about your daughter is too cute😊

what about a Fixed heal 2nd mortgage? it has a fixed rate, i know its not perfect but to consolidate debt would it still not be a decent move.

@Trinexx42

Жыл бұрын

Consolidating debt mathematically can be beneficial if you get a lower rate, but debt is often a behavior problem and not a math problem. Having separate debts makes it possible to pay them off one by one, which is psychologically rewarding and makes people more likely to actually stick with the plan and cut back on their expenses and eventually pay off all their debt.

Using a HELOC badly is using your home's equity AGAINST you.

@austintomkewitz3981

Жыл бұрын

401k is better there's what's called a "hardship withdrawal."