Debt Payoff Strategies with First Position HELOCs

I want to step into the First Lien heloc, which is a very relevant topic in this community. If you are working on transitioning into a First Lien HELOC or you have a First Lien heloc, please comment. If you have a First Lien HELOC already, or if you're in the process of refinancing your mortgage into a first lien, or you're on a purchase for first lien or you're thinking about it, you're trying to, you know, make sense of it, see if it's right for you. Let me know in the comments. So to understand the landscape as it relates to the First Lien Home Equity line of credit, there are only four banks that I know of that offer a first position home equity line of credit. There's only four banks that I know of. There could be more. I'm pretty sure there's more. But the four that I'm most aware of is North Point Bank, First Savings Bank, University bank and PNC Bank. So I'm going to go ahead and type that in the comments so that everyone can see North Point Bank, First Savings Bank, University Bank, PNC bank, these are all banks where I have clients that have used these banks to acquire first lien HELOCs. So stuff still to this day they're being offered. CMG Financial is a like a mortgage brokerage. So they're not a bank, but they help a lot of my clients in the past and currently acquire the all in One loan, which is essentially a first Lien home equity line of credit. It's the same thing. So if I'm saying First Lien HELOC and I say all in One Loan, same product, think of it as like their trademark all in One Loan. And the all in One Loan is serviced by NorthPoint Bank. First Savings bank is a bank and then there is a organization within First Savings bank that if you go to my website you go into resources, you'll see a link for all in One Loan. You'll see a link for First Savings Bank, First Lien heloc. I'll do the work for you, throw it in the chat so you don't have to go look for it. But those are two established relationships that I have with these banks at cmg. You will most likely talk to if you go through me, a gentleman by the name of Harrison George or someone on the Harrison George's team with all in One CMG Finance. And when it's all said and done, when you get approved and it makes sense North Point bank would be the bank that would service that all in one loan. More than likely. Then you have First Savings Bank. Now, something happened recently with First Savings bank that I want everyone to be made aware of because I just learned about it a couple weeks ago, got more information, got more details. Now I can share this with you. The ball was dropped from a communication standpoint, so I'm doing everything I can to inform my audience, inform my clients that are interested in working with First Savings bank for the First Lean Heloc position. So in the last few weeks, First Savings bank has gotten to the point where they simply received too much business. A lot of people in the last few years, thanks to people like myself, Christy Van Kwok Brothers, and other YouTube channels that have grown over the years, talking about First Lien HELOC and how you can, you know, use it, leverage it to accelerate your home, pay off debt fast, save more money, invest all the wonderful things that you have already learned about, you know, on the YouTube channel. And what I'm doing right now is dropping the two links for the First Savings bank and then all in one loan, dropping that link right now for both those two resources. So that you can see. So due to the fact that First Savings bank has been getting a ton of business, what they did without communicating, which sounds like bad news, and I told him straight up, I'm like, you guys dropped the ball on this because you didn't communicate with your content creators. And then that trickles down to the customers. So then the content creator looks like a jackass if a client calls him, like, hey, why is this happening? With my First Lien Heloc, I'm nervous, I'm upset, I'm confused. So with First Savings bank, due to the increased amount of business, they were unable to continue to take on more business without taking on too much risk for the bank as, as a whole. So it's, it's good news because they're wanting that business, but they literally cannot service everyone that wants to transition into a First Lien Heloc. It's bad news for people. And I want, I don't want to say bad news. It's just unexpected news. And without press, proper communication can be a headache. So some of you who already have a First Lien Heloc with First Savings bank, you're going to be moved over to North Point Bank. North Point bank is going to now service your First Lien Heloc product. So nothing changes regarding your credit limit, your interest rate, your terms, nothing will change in terms of the terms of your agreement, you're just going to be with a different bank altogether. Well, that's not as easy as you having a 30 year fixed mortgage with bank of America and then they sell it to another bank, ABC Bank. It's not as easy as that. If you got a first lien HELOC and you get switched over to another bank, you have to now set up direct depositing all over again. You have to set up your auto pays all over again. You have to switch routing numbers, account numbers, logins, passwords. It is a large undertaking and this is something I talk about a lot. When you transition from a 30 year fixed mortgage to a first lien HELOC, it's a pretty big undertaking. Not only do you need to have the capital and the credit score and the cash flow and the numbers for it to make sense, but once you do get the product, there's a little bit of a delay, about a 30, maybe 60 day delay in getting all your accounts set up. So you can imagine if you are, you know, talking to First Savings bank and you get your product, it's with First Savings bank, your checking account and everything is with First Savings. And then within a month you get a notice saying that you're being switched over to North Point. So that happened to one of my clients. So far, he was a bit upset, frustrated. I was caught blindsided because I'm like, wow. My team members over at First Saving bank aren't communicating with me, the content creator. If they're not communicating with me, they're not communicating with Christy Band, they're not communicating with Kroc brothers. Not right. They're not communicating properly. So they dropped the ball. They are definitely. And that can come off as negative, right? Because you're thinking, oh, what's, what's the safety of that bank now? Why are they selling their, their first Lien HELOC positions to another bank? What's going on? Are they going to fall? Are they going to, you know, go under? What's wrong? What's wrong? So I told them, I said, you, you better control the narrative and educate your content creators and educate your audience on how this is good news. Because this is, this means there's a large demand and not enough supply. It isn't because the bank is mismana funds or taking on too much risk or doing fraudulent activities. So you don't want that to be the story. You want to say, no, we're getting a ton of business, more than we can supply. And so now we're partnering with North Pointe to service some of our business for the time being until we can get our balance sheet or assets or whatever needs to be done for them to either whether they got to hire more loan officers or they have to do more training to be able to process these, these loan products. So they did sell, I don't know, a decent portion of their first lien HELOC positions to North Point. North Pointe is a bank that can handle the, the demand. Okay, so that is big news. Things to be aware of, questions to ask. If you're already talking to First Savings bank, then you have University Bank. University bank is where I have my first position home equity line of credit. I use First Savings Bank. I mean I used University bank to purchase my first property. So I use a first lien HELOC as a purchase to acquire the property. If you're going to do a purchase, some standard details and there's a lot more information that you need. But like the most important stuff or the primary things is having a good credit score 720 or higher, preferably to get the best rate, a DTI below 42%, preferably 10% in reserves, 10% down payment plus closing. And I would also add you probably want to have an extra five or ten thousand dollars available that you can also put on the line of credit to create some space in there for like initial expenses as you get everything properly set up. Okay. And between North Point bank with all in one loan, First Savings bank and University bank, they all have the sweep account. A sweep account is not required to do velocity banking, but it does create automation. Okay, automation, which means you're able to automatically deposit your paychecks, automatically pay bills, automatically set up auto pay and you really don't have to pay close, close attention to your money going in, money coming out because on auto. So it's like doing velocity banking on automation that does free up a lot of head space. So there's a lot of value there, but still not required for you to do velocity banking. A lot of you are doing velocity banking with a personal line of credit unsecured or a business line of credit or a second position HELOC where there isn't a sweep function. And every time you get paid, you're manually depositing your paycheck into the HELOC and you're manually moving money back out to pay your expenses. So it's more manual work, no doubt, but still can be done. PNC bank also does a first position home equity line of credit. They do not have a sweep account. I will Also add that PNC bank does not is not going to be helpful in helping you incorporate the velocity banking strategy. Right. Mortgage acceleration versus all in One First Savings and University bank. They do understand what we're doing, they're in support of what we're doing. So you have a big bank that is supporting you in paying off your home early. They've got calculators, they've got spreadsheets, they have customer support to help you process. And in addition, you've got me, especially if you're a client, one to one, you, you've got me where we can process the tool, making sure that we're using it properly. Okay? So that would, I would say that's the only drawback with PNC bank is you're not going to have that level of support. So you don't want to walk in there saying, hey, I'm trying to do, you know, mortgage acceleration, velocity banking, accelerated banking, you know, throw terms. They're going to look at you with three heads. But when you say that to all in One for Savings University, they're going to be cheering you on in a sense. Right? They're going to be helping you out, they're going to be running numbers with you. PNC bank is more so there's just going to qualify you, take you the process, approve you or deny you versus all in One First Savings University, they actually run the numbers with you to see if the product even makes sense. So each bank has a parameter where for example, with all in one loan, if you've got a 30 year mortgage and you're at 5.25% and you're like, does it make sense for me to go from a 5.25 to an 8% first position HELOC well unlike PNC bank, which they'll probably just qualify you and it's up to you to figure that out. All in One CMG will have a calculator, they'll plug in your current mortgage and what you're doing and they'll run it side by side with the all in one loan product at that assumed interest rate and they say okay, if the all in one doesn't get paid off before your 30 year mortgage, making say extra payments or doing whatever it is you're doing now, then they'll say okay, it's probably not a right fit for you. Also they'll say, well according to your income, expense, cash flow, things like that, if we can't accelerate your mortgage within 12 years or less, then they're going to recommend you not get the product. So we're in alignment there. I go even further where I'm in the camp of five to seven years, seven to eight years. If it's going to take me 10 years or longer to accelerate my mortgage on a first lien position, to me, it's not the right time for you to do that. So that's going to be some, some parameters that I like to set personally. Right. So when it comes to accelerating your mortgage, wherever you're currently at, let's say you want to pay off your mortgage early and you saw videos on my channel and others about the first lien heloc, please hire a coach. Me, let's run the numbers together. Or someone else. Christy Sam Kwok, Michael Lush Place University Any one of us spend the money, hire, pay for some coaching before you get this product because it is a big undertaking. It's a totally different way of viewing the equity in your home and how you view the balance owed on it and all the other things that you can do with it after the home is paid off. Or maybe you don't pay it off. Maybe you get a first lien heloc not for the purpose of accelerating your mortgage but for the purpose of unlocking a ton of equity in there without having to do a cash out refinance. And you do the numbers, you're like, it's cheaper for me to do this instead and you unlock the equity and maybe you go straight to investing. So, so keep that in mind. Very, very important. So that is some updates on the first link Heloc product.