Half Your Mortgage
Will The Banks Offer Promotional Rates or Advertise HELOCs In A Down-Turned Economy
The banks are begin to flood the markets with advertising for HELOCs and offering promotional interest rates below prime rate for two reasons. One, they need new customers / loans to originate. Two, a HELOC is a private loan (not federally regulated) ...
What Is Premium Financing & How Is An Insurance Policy Used As Collateral
Premium financing is the ability to borrow yearly against one's whole life policy. One will approach different banking institutions who will collaterally assign this insurance policy just like a mortgage or any other loan. The institution will then ...
What Does The Effective Rate of Interest (ERI) Mean
Debt in an inflationary environment with low interest rates is virtually free. This is due to the combination of the cost of goods and services going up in relation to the cost of money. When one applies a tax deductibility to this interest rate on ...
What Is The Easiest Way To Get A HELOC For A Rental Investment Property
It is easy to get a HELOC for a rental transaction. It merely requires starting with a mortgage and refinancing into a HELOC after the seasoning period.
Can Real Estate Investors (REI) Establish a HELOC Against Their Entire Portfolio
Yes and no. Doing this is very difficult using the same strategy we teach in the program. Why? The banks will give lines of credit where the investor has interest-only payments, but the banks don't want anyone to pay it off early which is why they ...
$100K Business Line Of Credit (BLOC) vs $100K Hard Money
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies. Hard money is great for real estate, but the ...
How Many Properties Should Have A HELOC When Real Estate Investing With Numerous Properties
There's no one-way to do investments because it is all situational and a matter of personal risk preferences. There's no cookie cutter approach. That being said, most real estate investment portfolios should never have the entire portfolio on HELOCs. ...
The Credit Cards Promotional 0% APR Period is Over – Cancel or Keep Them
Does one want access to more funds? (If yes, keep them open) Will one apply for more 0% interest credit cards? (If yes, keep them open) One can get more 0% APR cards at nerdwallet.com, creditcards.com. Do the current cards have good/great benefits, ...
The Bank Contact Was Different Than The Person / Name Listed
If a bank employee moves to a new bank, gets promoted, demoted, fired – they don’t think about calling us. Instead they move on with their lives like 99.9% of other people do. So the bank list may not be 100% accurate at every moment. These contacts ...
Should Someone Pay The Primary Residence HELOC or Investment Property HELOC First
It always depends on the individual investor and the property in question – primarily what the risk assessment is and if it meets one’s risk standards before investing. There's an emotional decision and then there's a mathematical decision. From an ...
Should Someone Get A Rate Lock For Their Loan
Depends on one's cash flow and the rate lock APR. Use the HELOC calculator to see whether a 0.5% to 1% interest rate increase (i.e. without a rate lock) would still work based on the monthly positive cashflow. If the yearly increase is too much for ...
Don't Banks Want Interest Rates To Go Sky High
No. In fact, banks make more money when interest rates are low. High Federal Reserve interest rates will leave lower margins (i.e. rate of return on investment) for a bank because a 10% interest rate will only allow a bank to charge an extra 1% above ...
Should One Use 0% APR Credit Cards To Pay The HELOC Down
The problem with most 0% APR credit cards is the limits are often quite low. If a card only has a $10K limit, it can only be used for a few months before its maxed out. This can be potentially negative if it is a personal credit card, due to the ...
A Second Lien Position HELOC Save A Little Money Over A First Lien Due to Interest Rates – Why Not Start Here
First, the bank’s balance sheets see second-lien position loans as high risk and are exponentially more likely to issue a freeze or pay in full call on the loan. They have no guarantee of collateral rights (the home) and therefore they cannot ...
When Is A Reverse Mortgage Better Than A HELOC
Only one situation. When a person is elderly, cannot work any longer, has no fixed income of any kind and still has a mortgage with more than 20% of the home’s value still due. The reason for this is simple. The bank cannot approve this person for a ...
When Should Someone Refinance Their Home To Access More Equity in The HELOC
Refinancing is a good option when there is a substantial amount of equity in the home that is currently inaccessible and that liquidity is desired for future investments or emergencies.
After The HELOC Is Paid Off - Can It Be Kept Open As A Line Of Credit Perpetually
Yes, one can keep the HELOC open until the draw period is over, then it will close unless something is still owed at which time time it turns into an amortization period. However, one should never have that occur but rather refinance into another ...
What Is The NMLS Number For This Organization
The Nationwide Multistate Licensing System & Registry (NMLS) is used to license residential mortgage brokers and originators and track their history for public safety purposes. These licenses mean very little to those who are not sponsored by or ...
Can A HELOC Work Like A Reverse Mortgage
Yes, a HELOC allows a homeowner to access the equity paid into their homes just like a reverse mortgage; however, HELOCs do not have the incredibly high fees associated with accessing that liquidity (e.g. $0 to $1,000 for accessing up to $1M in ...
Does The Government Endorse HELOC Programs
No. HELOCs are private bank loans and are not federally regulated. On the other hand, the government does endorse reverse mortgages despite the enormous fees (e.g. $15,000+ for $250K) and hidden clauses that tend to take advantage of the elderly. In ...
Should The Checking / Saving Accounts Be Closed Since We Use A HELOC Operating Account Now
Not necessarily. More than likely the bank providing the HELOC will require a checking account with them as well.
What If One Only Pays The Interest-Only Payments On A HELOC
If one pays only interest then nothing will get paid off, it becomes a treadmill until the amortization table kicks in after the draw period closes.
Is The Credit Karma Debt To Income Calculator Good
No, their Vantage system should only used for a general DTI simulation but should not be relied upon as accurate.
Using A HELOC As A Survival Tool or Reverse Mortgage
A HELOC can be used as leverage to invest into real estate, but in hard times it can also act like a 'free' reverse mortgage at the drop of a hat. During every economic crisis, people are laid off, governments shut down, some are furloughed or suffer ...
I’m Retired With A Home Paid In Full – Why Get A HELOC
When retired and lacking any considerable amounts of reportable income, refinancing a home to access the equity in a home is almost impossible. The only solution is to sell, otherwise all that equity is trapped! This access to equity in retirement is ...
Is It Better To Buy A Home In Cash or Get A HELOC
The home typically should be bought outright with cash to secure a better deal potentially over those who require additional closing time (i.e. 90 extra days) after a successful inspection. There are always things the inspection finds that require ...
Can We Rent Out The Primary Residence With A HELOC On It
No and yes. No, because everyone signs a document stating the use of the property is as a primary residence only. Yes, because 99.99% of the time the bank only cares about getting paid for the HELOC.
Are Land Conservation Tax Rebates / Deductions Illegal
The scheme the IRS is trying to stop is a “syndicated conservation easement” and it truly is “abusive” to the system. A conservation easement, in its original, legitimate form, is granted when a landowner permanently protects pristine land from ...
Is Buying A Luxury Vacation Home A Good Investment In This Economy
There's never a yes or no answer to any real estate transaction. One must analyze the deal, know what to look for, what questions to ask, what market indicators to study and make a decision based on those outliers. Vacation homes are typically good ...
Can Mortgages Come Off One’s DTI (Debt To Income) Ratio
No. PITI (Principal, Interest, Taxes, Insurance) is the sum components of a mortgage payment. This calculation is used in conjunction with a 15-year to 30-year stress test to obtain a DTI Ratio.
What If Interest Rates Increase
There are fixed, hybrid and variable rate HELOCs. Variable interest rates mean the percentage will rise or fall depending on the monetary policy of the Federal Reserve. With our strategy, one's HELOC will become interest-rate immune - essentially ...
What Are The Interest Rates On A HELOC Currently
Lender interest rates and programs vary wildly from one another. HELOCs are bank owned assets and stay on the bank’s balance sheet. Therefore they are not federally regulated like 99.99% of all mortgages today.
Why Haven’t I Heard Of This Mortgage Strategy Before
Depends, it’s nothing new or magical. In fact, this strategy has been practiced for centuries by the elite. It's been done by 20+ million people worldwide for over 40+ million homes! Finally, Mortgage Loan Officers don’t offer HELOCs and most Bankers ...
Does A HELOC Have Closing Costs Like A Mortgage
No, although some banks have costs like a mortgage, ranging from $0 to $750. A HELOC is more efficient and cheaper than a mortgage, by far!
Does A HELOC Have Mortgage Insurance
No. And out of thousands of banks researched, not one has charged it - yet!
Can One Get A HELOC On An Investment Property
Yes, we have several banks that offer a HELOC for investment properties up to 80% Loan-To-Value.
Can One Get A HELOC On A Purchase
Yes, we have several banks that offer a HELOC for new home purchases in the first lien position, eliminating the need for a mortgage and refinance into a HELOC after the seasoning period has passed. Typically, these banks will require a 10% down ...
What Is A Hybrid HELOC
A hybrid HELOC allows one to lock a portion of the outstanding balance at a fixed rate while leaving the rest on variable interest rate. With coaching, we are able to spend time and review each strategy and determine whether a fixed or a variable ...
Doesn't A HELOC Have Variable Rates
The majority of HELOCs are variable interest; however, the option exists for fixed or hybrid as well. Some banks offer a low fixed rate for 5-10 years, which is all the time most students need to pay off their home. A hybrid HELOC allows one to lock ...
Can This Be Done With A Mortgage
No, because a mortgage has no liquidity of any funds paid into the loan, save a costly refinance or sale of the home. This is why 99% of Americans don’t pay extra on their mortgage.
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