How To Find The Right HELOC in Alaska

Hello and welcome. In today's video, we're covering the state of Alaska, how to find the right home equity line of credit in the second position to position you to accelerate your debt, increase cash flow, rebuild your credit, ultimately getting you closer, closer to financial independence, debt freedom, and financial freedom. So with that being said, this is part of an entire series where I go state by state doing research, doing all the work for you in advance, giving you the entire framework completely for free so that you comb through all the noise and all the marketing and find these gems across the United States that are called credit unions, not-for-profit banks, small banks in your state, in your city, in your town that are doing business with you only. Only residents of those specific states that these banks cover. And they have the best credit cards, the best interest rates, the best products, the lowest fees. But most people don't know this in America. And so there's thousands and thousands of dollars that your average American is losing to high interest rates on a daily basis, on a monthly basis. Thousands of dollars just going out the door. 30%, 40% plus of your paycheck is going towards Debt payments. And I want to be able to provide a level of relief along with strategic use of debt to better your financial position. If we can just take the time to learn these things, commit the time, get dedicated, and apply this, I'm telling you, you will recover tens of thousands of dollars in lost interest recaptured back into your economy. And because we're using this specific type of tool called a home equity line of credit that's backed by the equity in your home— so this applies to all homeowners. If you're not a homeowner, that's okay, there's other products for you. But in this series, I'm specifically focusing on average American homeowners who are sitting on tons and tons of equity. There's trillions of dollars of trapped equity in single-family residence all across the country. And at the same time, your average American has 30%, 40+% of their income going to debt payments. And the average interest rates that they have on credit cards are 20+%— the average interest rate on personal loans are 10+%— the average interest rate on car loans are 7%, 8%, 9%, high single-digit rates on car loans. Personal loans. High double-digit rates on credit cards, high double-digit rates on IRS debts with fees and the interest rates upwards of 7+%. Meanwhile, there are HELOCs all across the country right now that you could be getting interest rates locked in, intro periods upwards of 3 to 5 years, anywhere between as low as 5% And if we're talking 1-year intros, as low as 1.99% to 5.99%. Prime interest rate right now is 6.75% in America as I'm recording this video. Here's the framework on the left-hand side of the board. This will not change no matter what happens to interest rates. When you know how to find the HELOC, understand the bank's offer And pair it with what they're looking for, we're positioning ourselves to get these best tools. So having a really good credit score, 720 or higher, DTI 30% or less, loan-to-value on the HELOC, 70% to 90% is gonna typically get you the best rates, the best deals, low closing costs, in many cases, no closing costs. Intro rate, like I mentioned earlier, 6 to 12 months is your average. Some banks are doing 3 to 5 years, Where you can lock in a very low rate around 5%, 5.5% right now, okay? Even somewhere upwards of 6%. We're looking at prime 6.75% or below. That's our standard. So we can literally lock in HELOCs today across the country at 6.75% or less. You could literally consolidate the vast majority of your debts into the HELOC, pay tons of Pay far less in interest. So you save tons of money in interest just by switching the debt, putting on the home. And then when you activate the strategy of velocity banking, being able to park all your income into the line of credit, you take that 6.75% and you're able to cut it in half, where your net cost of money each year is somewhere around 2%, 3%, maybe 4% net. That's insane. Mind you, because you're using debt against your home, the interest can be tax deductible potentially. And since you're leveraging an asset, real estate, the property itself appreciates over time. So you make your money back in equity over time, potential tax deductions, lower interest costs. This puts more money towards Independence, financial freedom, retirement, you name it, the whole shebang. With that being said, I found you 3 banks in Alaska if you're a resident. Northern Skies Federal Credit Union has a prime -0.5%, potentially. I put a question mark there, wasn't as clear on the website. I'll take you to it. They have a 5-year draw, low closing costs. EP Federal Credit Union has a prime -0.25%, max credit line $250K, no closing costs, 90% LTV with a 10-year draw. That looks fantastic. True North Federal Credit Union Prime Standard, right? $250K max credit line, 85% LTV. These are the top 3 banks that I found. I'm gonna go ahead and share my screen to mention some other banks that I found as well as honorable mentions but did not make it to the whiteboard. So here we go, starting with Northern Skies Federal Credit Union, as you can see here, they've got this bar says Northern Skies 6.25%. So it sounds like the, the rate is prime minus 0.5%. Come over here to the HELOC product. And this is all they pretty much show on their, on their website. And then this is some of the details that they have, right? And that's all I could pull from the website. So we're gonna need clarity. Again, if you live in Alaska, you can pretty much just call this bank and ask them, hey, I see this 6.25% rate on your website, what do I need need to do to have that rate? Is that how the rate is based off of, prime minus, or, you know, is this just marketing? If it is, great. If not, most likely you're at prime, which is still pretty good. Here's the next bank, was EP Federal Credit Union. This is one of my top picks so far with, with the state of Alaska that I found. Variable rate, No closing costs, line of credit $250K, 10-year draw. Okay, come over here, margin prime minus 0.25%. That's good, we like that. Here's the next bank, True North, just a standard prime, $250K max, 85% LTV. Here are the honorable mentions. These could be good banks. But because they don't display the information, I can't put them on the whiteboard. So Spirit of Alaska Credit Union offers a HELOC. I just don't know their information. It says you got to call to get the quote, right, to get more details. Some banks do that. They, they hide their details on their, on their product. So it's an honorable mention. We got Credit Union 1. They do HELOC at 7% minimum, so that's prime plus 0.25. And then we have Alaska Air Group Credit Union, 80% LTV, 7.75%, so that's prime plus 1%. That's the least attractive bank of all the banks that I, I mentioned. In my personal opinion, if I'm living in Alaska, the bank that I'm going to lean more towards is definitely going to be EP Federal Credit Union or Northern Skies if I know that prime -0.5% is true. Although if I— looking at your own finances, if you know it's going to take you more than 5 years to eliminate all the debt you're trying to get rid of, then you might lean more towards EP Federal Credit Union because of the 10-year draw. Now, when it comes to draw periods, you can always renew the HELOC. The only risk is that the rate would be higher at that later point in time. So being able to lock in a 10-year draw, not having to use your credit again, has its advantages too, right? So EP Federal Credit Union, that's my top. Northern Skies would be number 2. True North would be my 3rd pick. My name is Denzel Rodriguez, personal finance geek of the 21st century. I do one-on-one coaching just like, just like this, mapping out your finances. Either we take it to the whiteboard, we do a phone call, we do a Zoom, whatever you like, whatever works best for you. And this, all this information is priming you, getting you ready so that by the time we get on a call together, we're pretty much narrowing the bank, or you're already in the process of applying, or you Got the HELOC approved, it's in hand. Now you need help with the strategy of velocity banking to, you know, get the results that you're looking for. And it's absolutely worth making that investment in yourself. Number one investment is you. So continue to invest in yourself, take the time, learn these things, um, pay attention to the other videos in this series, especially if you live in a state and there's like 3, 4 states nearby, oftentimes there's these credit unions that will do business in multiple states. So in my series, if you have difficulty finding a bank close to where you live or not seeing the best deals, let's say, then you want to look at neighboring states. So go in my playlist and look for those neighboring states and see if you see any better deals, and that is not a problem. Go ahead and do that. Have fun with it. Reach out for that one-on-one support when you're ready. God bless you. I look forward to the next video. Have a good day. Bye now.