If youโre thinking about using your home equity in Late 2025 โ STOP and watch this first. In this episode, licensed mortgage experts from The Clear Close break down 11 common HELOC mistakes that can cost homeowners thousands of dollars (or even their homes).
Whether youโre using a HELOC for debt consolidation, renovations, or investment property, this video gives you the insider roadmap to make smart moves โ and avoid the traps that most homeowners fall into.
๐ What Youโll Learn: -The 11 most expensive HELOC mistakes homeowners make -How to choose between a fixed vs variable HELOC -What lenders wonโt tell you about qualifying in 2025 -When itโs smarter to wait โ and when waiting costs you -Why timing, credit, and cash-flow planning matter more than ever -How to use your HELOC strategically for real estate investing or debt payoff
๐ This Video Is For You If Youโre: -Thinking about getting a HELOC this year -Considering a home equity loan or refinance -Struggling with high-interest debt or credit cards -Curious how to use equity for financial freedom
Chapters 0:00 - Intro 00:41โ What Is a HELOC in 60 seconds 02:30 โ Mistake #1: Making Big Purchases Before Closing 04:12 โ Mistake #2: Pulling Out Too Much Equity 05:26 โ Mistake #3: Not Borrowing Enough (Real Client Story) 09:30 โ Mistake #4: No Exit Strategy or Repayment Plan 12:00 โ Mistake #5: Not Asking the Right Questions 12:55 โ Mistake #6: Applying Too Early 14:00 โ Mistake #7: Applying Too Late 16:12 โ Mistake #8: Mixing Personal and Investment Use 18:51 โ Mistake #9: Getting a HELOC from a Big-Box Bank 20:20 โ Mistake #10: Tax Implications 21:18 โ Bonus Mistake 22:10 - When a HELOC Actually Makes Sense 23:41 โ Final Thoughts & Next Steps
Questions we answer: How does a HELOC work in 2025? Is a HELOC better than a home equity loan? How much equity do I need to qualify for a HELOC? What credit score do I need for a HELOC? Are HELOC rates fixed or variable in 2025? Can I use a HELOC for investment property? What are the pros and cons of a HELOC? How do I qualify for a HELOC with bad credit? Can I use a HELOC to pay off debt or credit cards? Is it smart to use a HELOC for home renovations? How is a HELOC different from a cash-out refinance? Are HELOC payments tax deductible in 2025? What happens if I canโt repay my HELOC? Should I get a HELOC or refinance my mortgage? What are the biggest HELOC mistakes homeowners make? How can I pay off my HELOC faster? Can I have multiple HELOCs on the same property? How often do HELOC interest rates change? What fees are involved with getting a HELOC? Is now a good time to get a HELOC with high interest rates? Can I use a HELOC as a down payment on another home? How does a HELOC affect my credit score? Whatโs the best bank or lender for a HELOC in 2025? Can I get a HELOC if my home is paid off? How do I avoid the common HELOC traps homeowners fall into?
The Clear Close (DBA of West Capital Lending, Inc.) is an Equal Housing Lender; NMLS - 1566096 Jason Kim - NMLS 1680429 | DRE 02178073 Peter Ahn - NMLS 2664403 | DRE 02252395
Disclaimer: The information provided in this video is for educational and informational purposes only and should not be considered financial, legal, or investment advice. While we are licensed mortgage and real estate professionals, the content here is general in nature and may not apply to your specific situation. Always do your own research and consult with a qualified professional before making any financial decisions. By watching this video, you agree that we are not responsible for any financial outcomes based on the information provided.
