Apr012015

10 ways you can benefit from a home equity line of credit

The benefits of using home equity lines of credit are large, and the costs are minimal. Get your free money today!

free-money

If someone offered you free money, would you take it? If you didn’t suspect a hidden agenda, I believe you would. Most people would accept financial help from family or friends because people who give gain tremendous emotional benefits from giving. It’s incumbent on everyone to gracefully accept any gift offered to them because it pleases the givers.

Ten years ago, lenders embarked on the biggest gift program of all time when they began making “loans” to people who had no ability or inclination to pay them back. The recipients of these gifts, affectionately known as Ponzis, accepted this free money and thoroughly enjoyed their enhanced lives, lives made possible by home equity lines of credit (HELOCs).Absolutely-Fabulous-HELOC_approval

During the early 00s in much of California, house prices rose at rates similar to the median wages, and since lenders were willing to provide gifts to homeowners that matched the underlying home value, millions of homeowners received hundreds of thousands of dollars in free money from lenders.

It was a such a great system that many Ponzis have waited for 10 years just to get another chance to accept free gifts from lenders. When house prices finally bottomed and values rose rapidly, the requisite equity was there, but lenders weren’t feeling quite as generous as they were in the past. But with government bailout money in place and with taxpayers now backing the “loans”, lenders feel more secure about giving away free money to homeowners.

5 Ways a HELOC Makes Home Improvement in San Diego Easier

By Caroline Hailey, March 24, 2015HELOC needed

Most homes are works in progress, and home remodeling projects are often needed to ensure your house continues to meet the needs and desires of your whole family.

Your family needs and desires more spending money. Houses weren’t meant to provide only shelter; houses can provide nearly unlimited money for consumer goods, and every homeowner should take advantage of this wonderful benefit.

And while you might want that new kitchen or bathroom remodel now, the money isn’t always right there when you need it most.

A home equity line of credit (HELOC) could be the answer if you want to make home improvements on your San Diego home now but don’t want to front the costs. A HELOC makes it possible for you to use your home’s equity to your advantage.

Money tied up in home equity is wasted. Liberate that equity with a “loan.” (We all know it isn’t really a loan, but you must pretend you will pay it back or political Conservatives get bent out of shape) HELOC happiness

San Diego’s Mission Federal Credit Union allows you to borrow up to 100 percent of your home’s equity with low interest rates, favorable terms and potential tax savings (consult your tax advisor). By using a HELOC from Mission Fed, you can access funds as needed up to an agreed upon credit limit to make those necessary projects happen.

God bless San Diego’s Mission Federal Credit Union!

5 Ways You Can Benefit From a HELOC

1. Your home remodeling projects don’t have to wait.

You spend a lot of time in your home, and once you’ve decided you can’t survive another day with the old appliances in your kitchen or your outdated bathroom, it’s hard to hold off projects long enough to save money to cover the total cost up front. A HELOC can give you the freedom to make those needed renovations now, rather than live without them for another few years.

You should never have to wait for anything; you certainly shouldn’t wait for something unnecessary and foolish like saving and actually affording what you want.

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2. You can take advantage of good deals while they last.

Good deals on everything from contractors to building materials come and go, and they don’t always come on your schedule. A HELOC enables you to take advantage of good deals when they’re available, ultimately saving you money in the long run on those big home projects.

Whenever you fall victim to a sales pitch creating a false sense of urgency, you can justify your foolish impatience by convincing yourself you’re getting a great deal. You will pay far more in interest and fees that you would ever save, but if you ignore that fact, you can have what you want today! Go for it!flapper

3. Your savings can stay in the bank.

It’s important to have some savings in the bank for emergency expenses. Using Mission Fed’s HELOC can ensure your savings stay put without forcing you to forego those remodeling plans.

Borrowing money at 5% (or more) so you can continue to earn 0.1% isn’t a particularly wise financial decision. If you lack sufficient savings to complete the work and maintain your reserves, then you really don’t have enough money to undertake the project. However, if you convince yourself you are a sophisticated financial manager, you can foolishly use debt in this manner and not recognize the folly for what it is. This self-delusion is particularly effective if you convince yourself you add value to your property in the process. Ignore reality! It’s overrated!

4. Continue to improve your house to increase value.

A house is a major investment, and most homeowners want to keep their homes updated so the value can increase. Making home improvements on your house now can potentially help you get your investment back — and then some — if you decide to sell.

Even though the best home improvements only add $0.50 to $0.75 to a houses value for each $1 spent, believing you create value is a wonderful emotional justification for a financial decision that really doesn’t add up. You should recognize that home improvements are a consumptive use of money, but failing that, convincing yourself you add huge value is a pleasant delusion. Live the fantasy!

different in irvine

5. Buy cars, boats and other toys to park in your yard.

Isn’t your house more valuable when you have an expensive car parked in front of it? You will look like the success you are with a nice car. Wasn’t your decision to buy a house a sign of your success? Why not show off a little to your neighbors?

WhereDidAllTheHELOCGo

6. Take expensive vacations “on the house”

free money atmView your house as a breadwinner. You work hard for your money, so shouldn’t you keep what you earn and spend the “house’s” money instead? It’s not like your house needs the money. Spend it!

7. Impress your friends and neighbors

Your friends and neighbors think about you constantly, compare what they have to what you have, and enjoy feeling superior to you because they enjoy better stuff. Don’t be such a loser! Take the gift money from the bank and go buy better toys than your friends and neighbors. You deserve it! After all, you are really better than they are, and they should know it.

8. Boost the economy and stimulate demand for jobs like yours

WTF_HELOCThe economy was weak over the last eight years mostly because the free money from lenders stopped flowing. If you really want to see the economy take off, take the free money offered to you and go spend it. The increased demand for goods and services will put even more people back to work, and those people will also stimulate economic growth. Whenever you give back to the community by spending in the local economy, the good comes back to you. When you spend, you don’t just help yourself, you help everyone in your community, State, and Country. Spending is patriotic!

9. Get a shopper’s high

Whoever said money can’t buy happiness obviously never went shopping with a credit card backed by a HELOC. Since HELOC money is so abundant, particularly in California, and since a HELOC replenishes itself as house prices rise, you can spend, and spend, and spend and spend.

WhereDidAllTheHELOCCashGo2

10. Solve the problems with your drug habit

HELOC AddictionWhen questioned about his drug problem, a famous rock star in the 1980s said, “I used to have a drug problem, but now I have money.” Have you wanted to get high, snort coke, shoot heroin, or smoke crack, but you lacked the money to do so? Don’t let money be a limitation!

A HELOC from Mission Fed can give you the flexibility you need to be proactive with those home remodeling projects and start them whenever you desire.

All San Diegans are welcome. All accounts and loans are subject to approval.

Thank you. Thank you so much.

I can’t wait to get my HELOC!

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