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I actually asked this question regarding mortgages on a velocity banking video on another channel and got nadda. If you have a 6 month emergency fund (and even a credit card), paying extra on the principle makes so much more sense to me. We used velocity banking method to pay off credit card debt, and it worked great. But using a HELOC to pay off a mortgage just seems like a lot of extra steps.

"emailing is so 2005"--- Laughing at my old self watching this video to make sure its relevant

Matt! Thanks for bringing other professionals on to give more knowledge and value! You are an amazing go giver!

I have like zero math cells in my brain, so this is all crazy-making...but I can understand what you are saying. I purchased a home in 2022 and my mortgage company has changed FOUR times, which is also a bit nuts. But this last change has me paying $370 more/month...is that possible?! I talked to the county and my property taxes went up $1400 (I think to reflect the new value of the home), and my homeowners insurance went up $200, but that's $1600/year, not $4,400! I'm trying to get information from them, but I don't have much hope I will understand it, and that leaves me so open to getting scammed. When I call I can either barely understand the person, or they talk way above my head. Who can I have look at this and make sure it's right? My mortgage broker? Thanks!

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Not sure their z estimate considers the photos.. I think they judge a lot based on the prior price of that unit.. we mostly own condos with model matches right next door and the worse looking one often is valued more by 5% or so.. at least the publish the range so you can see their error tolerance is years worth of appreciation, lol

One of the problems that i see is that you need to be making over 150k and have a fairly low dti to be able to get approved for a decent house. If not all you can get is a 200k 1 bedroom apartment…. At least in South Florida

Both of you are only thinking in new buyers because you are in the business making money! But you need to think in people that are paying now half million homes in 7.2 % this is $3,000 + dollars monthly…

I’m so glad I decided to bite the bullet in early 2021 and bought my first home, new construction in Irvine CA. I wasn’t sure what would happen, having bought during COVID, if the housing market would collapse or not. Now I’m sitting on a 2.5% interest rate and have no plans to sell anytime soon. Perhaps if rates drop below 6%, the amount of appreciation I have been fortunate to experience over the last couple years would more than enough to offset the higher interest rate.

Awesome stuff!

A few things I think you failed to mention. There can be extra cost to owning a home, like if the A/C goes out, that can be 15-20k to replace that, another 10-15k to replace the roof. Also if you live in Cali, your taxes a year can throw a monkey wrench in your savings, if you even have any after paying that high monthly note. Side note My parents purchased their home in southern calif in 1970 for 24k, that house now is close to 1M. Great for the seller, crazy for the buyer. That community was and still is a blue collar community. So to afford that home now, after putting down 300k ChatGpt says you have to have a monthly income around 15k+ a month. So first, how many people make that, and who has 300k laying around. Second, is it a good investment to put that 300k into 50+year old starter home? But most important, something got to give, there's no way this can keep going in this direction, and be sustainable. This situation is leaving little to NO hope for a large percentage of Americans to own a home.

I thought there were laws against usuary.

People are waiting for home prices to come down and they will when the short sales and foreclosures hit the market.I t is not about the mortage rates its about home prices being to high.

Nope. Never coming back except for a day or two on business or to board a cruise ship. CA is turning in a lawless landscape.

Million dollar question do we have to sit together to sign him out? I’m dreading that.

If 3% of the purchase price is less than 15k, can the remainder be applied to closing costs? Example: if 3% down is $7,500 - can $7,500 also be used to lower the required cash to close?

If rates get a 5 handle on them within the next 12-18mo I'm hitting you back up for a re-fi Matt 🙌 be even sweeter if we still have 2-1 buy down 💲left to apply towards it. In the mean time we're aggressively paying down principle on a basis. Hoping we can knock off a $1k from the monthly payment upon re-fi. Holla at you when the time comes 🤝👊

I dont get why people make such a big deal about interest rates. On a 200k house its the difference of less than 100 bucks between 7 and 6%. Here its about around $300. If you can afford thousands a month in montly payments, 300 is nothing. Unless we are talking 2% to 7%, people shouldnt be so caught up on a few points.

Man I keep missing these lives

So the banks are collecting the interest in our money. I guess escrow is a good idea for those who irresponsible or don’t know how to invest. Really good for the banks.

Awesome video!

We were so caught off guard on the transfer and were never told at all on the loan transfer no notice on that no notice no letter from either company at all. We were changed with out notice. And ours is a va home loan too.

I agree with your overall assessment of these types of loans but what do you do if you find yourself in a situation like me where I have a complicated medical issue that is keeping me from working and so I don't qualify for HELOC, Home Equity Loan, or even a Cash Out Refinance. I've seen dozens of doctors about my condition, even had a major surgery which didn't fix the problem and been out of work for almost 3 years now. I've used up almost all of my savings (mortgage payments, bills, living expenses, medical bills, etc) and close to being completely out of cash and living on credit cards. The only assets I have are my gun collection (which I'm in the process of liquidating) and the equity in my home (about $250K). So what am I supposed to do? I only have bad options to choose from including one of these terrible agreements until my medical situation gets resolved or I get approved for disability.

Terrible description of ACV. The face amount is the theoretical max you get, except you have to factor depreciation

CA is a crap hole...

What how much is insurance that someone that owns a house cant afford it. Mine is like $2600 a year or something

This guy just said oh you can get it it’s just gonna be prohibitively expensive. Thanks for clearing that up

Thank you MATT!! (13:01) Great perspective you’re sharing. CA homeowners insurance is not the most expensive in the US. I love the content & banter. Way to go Javier!! 💪✨

California is absolutely beautiful. But the people and government ruin it. Nobody is moving back to California unless they are actors for a film or in liberal politics.

Fk ca

Are you trying reverse psychology 😂

F*** California

38% of texas is Forrest?

No one is going back to California

Nobody regrets leaving oppression for logic and freedom unless they're unintelligent.

I would not live in the state of California for any amount of money!! Yes, it's a beautiful state, but the buck stops there! It's insanely expensive, your state is controlled by a dictator, and the taxes are insane as well.

I've done summers in the south and summers in California, California used to be really mild in the bay in the summer now even the bay gets brutal hot and Sacramento was always on the verge of unbearable during the summer for me but I think I would die if i spent a week there in the summer. Where i live now outside of California we have a few bad days and are more humid but way more tolerable than cali for me. Eureka is still pretty comfortable in the summer but anything south of tahoe is pretty much a no go zone in the summer for me. I honestly think as climate change gets worse and more people leave Cali the market in a lot of the hotter major cities is gonna absolutely tank and more of the Pacific northwest and the northeastern seaboard are gonna become totally unaffordable even in the rurual areas. Idk why tf anyone is moving to texas though aside from political ideology reasons cause that place will literally be death valley in 10 years if things keep going the way they are.

Don’t come to oregon

Yes, y'all head back to California. 😂

MORE BANG FOR THE BUCK MOVING TO MEMPHIS AREA!!!

Bs. No1 is going back to cali except Biggie

Nobody is going back. Shut up!😂

Nah CA is falling..And I'm from the bay.

Yes California Dreaming was the song I would sing when I was in Missouri(aka misery) that was the first time I experienced snow. But also the first I experienced humidity. Let’s not talk about my time in El Paso. When I got back to California it was never hot or ever cold for me. Sweaters in summer and shorts in winter.

Typical mortgage person trying to look good for hs Realtor buddies who all work on commissions

People want to come back???

Awesome conversation Matt. I really liked your guest. I hope you bring him back in the future. Thanks!

Great info

I'm favoured $130k every 4 weeks! I now have a good house and can afford anything and also support my family❤