Home Equity Loan

Affordable Funds INVESTING – House Fairness & Organization Financial loans





Affordable Funds INVESTING – House Fairness & Organization Financial loans

16 comments

  1. I'd use the equity to pay down principal and refi with the possibility of a lower rate.

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  2. A home is a good investment sometimes, usually ONLY when you live in it for at least 10 years. In most other cases a home is a big investment that is more work than it is worth. You can make more money just working for the man.

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  3. Thumbs up

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  4. Awesome content!

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  5. do a video on payday loans. 😀

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  6. So is this rant about the video I posted a few days ago? If it is then I need to make a response video.

    We have large amounts of equity built up in my properties. What we borrow is merely for balance. Once we pay off a property we do not borrow against it again. We have enough cash to pay off all of our loans. 

    Also my " Bankster " is also a really good friend. Actually we have 3 or 4 at least. I sit on boards with some, eat lunch and dinner regularly with some and just stop by and visit sometimes. So people are always labeling people who deal in the loaning of money as bad people. This is not always the case. 

    People are always complaining about how they missed a few payments then lost their cars, homes, boats….( there is a real money pit) and all sorts of properties. Fact is if you take premptive action and defer they will bend over backwards to work with you. They do not want repos, they want customers in volume.

    So go ahead, tell me this was about my video the other day. I will respond with a vengeance…….now go create a great day….because I am creating one today!

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  7. In my opinion, borrowing money from the banksters for any reason is a bad idea. Borrowing money for an investment is insanity.

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  8. I am planning a 401k loan for $5000 to buy dividend paying REITS. It's a strategy based on realizing that 401k's are a scam.

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  9. I was approved for a HELOC on my second home in 2003. I never used it but it was there at a time when I was very unsure of my career from bs offshoring boogeyman stories. The one thing I did utilize was borrowing from my 401k to get the down payment on my home up to 20%. I was paying myself 4% interest which seemed better than the crappy 401k investment options. All in all this worked out as I made a 90% profit on the sale of the home in 2005. Hooray bubbles. I lost 30% to get out of a nightmare neighborhood from a different home i purchased in 2007 but it was the house's money. Now I am content in my current home that I refinance 3 years ago. It lost vale from the sale price 2 years earlier and has to eat pmi until a month ago but it was so much less interest. 5.25 over 30 years to 3.0 percent over 15 years. It is funny how amortization tables work out. I agree with the HELOC warnings you gave. Don't gamble the house.

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  10. I'm not a home owner yet, but I want to thank you for sharing and informing those who don't know. You probably saved somebody's credit and finances by sharing this, again thank you!

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  11. Very true. The idiots are coming out to play again. I work in the lending industry and all the signs are popping up. We've lowered our lending standards to approve more loans, people with scores in high 500s to low 600s are getting approved, which would of never happened a few years ago.  Also in the last two weeks, three people have wanted a loan for the following reason…….to buy stocks!!

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  12. Interesting.  I had no idea that there were such strings attached to a HELOC.  I personally wouldn't do it anyway as it seems rather retarded to borrow money on a sure thing like a house to go gamble in the stock market.  In fact, I'm looking to pay off my mortgage early.

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  13. Great advice, FFUSA! Sort of related: here in Canada u can hold ur own mortgage within ur own self-directed RRSP/401K. U pay a fee to administer it, but, basically, u pay urself to hold ur own mortgage providing u have enough capital within ur RRSP/401K to cover t/ mortgage.

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  14. I've never understood why people would take out home equity loans unless they are in dire straits and need the money to eat.  It's always been counter-intuitive to me.

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  15. Not speaking about legal ramifications or home equity load v business loans – I'm speaking strictly about borrowing to invest here….

    lol 5:12 you mean 2008-09 when rates were still low and maybe it WAS a good idea to borrow to invest? 20 years to come back in the market??? We have this thing now, it's called the Fed……… Their job is to fix shit 🙂

    Certainly there are better and worse time to borrow, but to say never borrow to invest may be a bit over the top as a general comment. It can work very well – leveraged gains, for those with their shit together in the market and those than can afford the payments.

    I suspect I'm not completely ordinary (hey hold that laughter) but we borrowed heavily, coming out of the crash and rode this bitch a long way.  2-3 months? ago we de-levered everything.

     I would NOT do it now. I do not see the risk-reward here at all, yikes. It seems to me people just having this thought now have kinda missed the boat….

    5:36 Low fuel – still!

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  16. Absolutely first…

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