Home Equity Line of Credit – Dave Ramsey Rant

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24 thoughts on “Home Equity Line of Credit – Dave Ramsey Rant”

  1. I know a multi-millionaire that built his business on a HELOCK when he was worth less than 50k. His HVAC businesses is great now 25 years later. They are not always bad.

  2. I would like Dave Ramsey to address the “replace your mortgage” with a heloc YouTube. They claim that you can buy a home entirely on a first lean heloc and that you can put 100 percent of paycheck in our loan to pay house quicker. The say you need a positive cash flow and equity. They also say that if you have a mortgage, you can get a heloc and use it as a bank account and pay all your bills through the HELOC like it is a bank account. So you would might put 30 thousand on mortgage, which means the mortgage now has a more effective payment but you monthly expenses is not higher because you meet the HELOC’s payment just by placing your paycheck in it instead of placing it in a bank account. They say it gives you freedom to put 100 percent on Heloc because if you have some leaky pipes, you still have access to to money but if you put it all in a mortgage and something bad happens you do not have anything to pay it with. Which means you are paying it off faster with a heloc because your mortgage has a more effect payment and 100 percent of left over monthly money goes to loan. So let’s say at the end of the month I have 1500 left over after expenses. If I have a mortgage I might put a 1000 away and 500 on mortgage principle. But if I have a heloc I can put 1500 on it and perhaps more because I have made my mortgage payment more effective.

    Dave Ramsey, I would love for you to address this. I want to know what you think. Because you when you address it, you address it as though it is a second bill with another monthly expense. As a money guy, I am sure that you have heard of this strategy. I am thinking about buying and I want the most effective method. This would be a great episode. Perhaps Dave Ramsey could invite these “replace your mortgage” on the phone.

  3. Wrong. I got a heloc and bought another property. You have to be able to juggle the payments. I’ve done it with my second property and re-invested it again. Just re-invest and don’t spend it on asinine things like a new kitchen or buy a car. Those give no return.

    He doesn’t understand leverage. That’s why he is pushing his products to make himself money.

  4. Hi Dave, I have a 3.5% interest mortgage on primary residence that I am trying to refinance (OR do a HELOC on) to take money out fast for the purpose of creating extra funds for a down-payment towards my next investment property. My equity is over $100 K in my primary home. Would it be smarter to do a refinance and get new 30yr mortgage in this case OR to request a HELOC and have 2nd mortgage for equity amount? HELOC = no upfront fees but higher interest while refinancing and doing cash-out creates larger monthly payment but interest can be written off. Any suggestions in my case? Thanks!

  5. It’s not what you say Dave, it’s how you say it. Why is it the only people you talk to with respect are the ones doing your plan? I’m sure you have great information, but I can’t hear it through your tone. What if a person went through a lot of verbal abuse as a kid at home and school, they come to you for help and you go into your Dave rant?

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