How the Wealthy Use HELOCs to Build Wealth and Protect Their Cash (Should You Have One?)

The Personal Finance Podcast

Andrew Giancola

Investing, Entrepreneurship, Business

4.7 • 1.4K Ratings

🗓️ 18 August 2025

⏱️ 48 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this episode of The Personal Finance Podcast, we break down everything you need to know about HELOCs (Home Equity Lines of Credit)—what they really are, how they differ from traditional mortgages, and why the popular "velocity banking" strategy to pay off your mortgage faster delivers minimal benefits with maximum complexity. We explore the math behind using a HELOC to chunk down mortgage payments versus simply making extra principal payments, revealing that the supposed benefits are often overstated and come with significant variable-rate risks that could jeopardize your home. Get the HELOC Ultimate GUIDE Here! Watch this episode on Youtube. How Andrew Can Help You: Listen to The Business Show here. Don't let another year pass by without making significant strides toward your dreams. "Master Your Money Goals" is your pathway to a future where your aspirations are not just wishes but realities. Enroll now and make this year count! Join The Master Money Newsletter where you will become smarter with your money in 5 minutes or less per week Here! Learn to invest by joining Index Fund Pro! This is Andrew’s course teaching you how to invest! Watch The Master Money Youtube Channel! , Ask Andrew a question on Instagram or TikTok Learn how to get out of Debt by joining our Free Course Leave Feedback or Episode Requests here. Car buying Calculator here Visit www.functionhealth.com/PERSONALFINANCE or use gift code PERSONALFINANCE100 at sign-up to own your health. Thanks to Our Amazing Sponsors for supporting The Personal Finance Podcast Shopify: Shopify makes it so easy to sell. Sign up for a one-dollar-per-month trial period at shopify.com/pfp Thanks to Policy Genius for Sponsoring the show! Go to policygenius.com to get your free life insurance quote. Indeed: Start hiring NOW with a SEVENTY-FIVE DOLLAR SPONSORED JOB CREDIT to upgrade your job post at Indeed.com/personalfinance Go to https://joindeleteme.com/PFP20/ for 20% off! Shop outdoor furniture, grills, lawn games, and WAY more for WAY less. Head to wayfair.com Get 50% Off Monarch Money, the all-in-one financial tool at www.monarchmoney.com/PFP Chime: Start your credit journey with Chime. Sign-up takes only two minutes and doesn’t affect your credit score. Get started at chime.com/ Links Mentioned in This Episode: 10 Home Renovations That Are Worth The MONEY! - Money Q&A Connect With Andrew on Social Media: Instagram TikTok Twitter Master Money Website Master Money Youtube Channel Free Guides: The Stairway to Wealth: The Order of Operations for your Money How to Negotiate Your Salary The 75 Day Money Challenge Get out Of Debt Fast Take the Money Personality Quiz Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:30.0	On this episode of the Personal Finance podcast, how the wealthy use he locks to build wealth and protect their cash.
1:00.5	What's up everybody and welcome to the Personal Finance Podcast.
1:03.5	I'm your host, Andrew founder of MasterMoney.com.
1:09.0	And today on the Personal Finance Podcast, we're going to be talking about Helogs. Now, if you guys have any questions, make sure you join the Master Money newsletter by going to mastermoney.com slash newsletter.
1:15.8	And don't forget to follow us on Spotify, Apple Podcasts, YouTube, or whatever podcast player, you love listening to this podcast on it.
1:23.5	If you want to help out the show, consider leaving a five-star rating and review on Apple Podcasts, Spotify, or your favorite podcast player. Now, today we're going to be talking about
1:33.2	something that I think most Americans should have open if they own a home. And we're going to talk
1:38.6	about the flexibility and the reasons that you should have a heat lock open. And there are a number of different things that we're going to get into today. And what I'm going to be talking through is, A, what is a helock? B, should you use a helock instead of using a mortgage? Like, should you pay off your mortgage with a helock? Is it better to utilize that helock? C, we're going to talk about a bunch of different ways you can actually use a helot to improve your financial situation. I'm also going to be talking through the ways not to use your helic because, again, this is a debt instrument. This is we want to be very cautious when we take out debt. And so I'm going to tell you the things that you should not be doing. And then lastly, we're going to talk about how to pay off your helock faster if you are in debt with your HELOC. Maybe you made a mistake and you are not happy with it. And so you want to pay off that HELOC really quickly. I'm going to show you how to pay that off faster. So this is going to be an action-packed episode. This is literally the ultimate guide to Helox. And we're going to dive deeper and deeper as this show goes on.
2:35.1	So without further ado, let's get into it.
2:38.8	So there are some wild Helox statistics out there.
2:41.5	Approximately 28% of homeowners in a recent study say they are likely to take out at Home Equity
2:46.8	line of credit in the next 12 months.
2:49.5	Now, this is up from 21%, which is what it was a year ago.
2:53.7	Now, the U.S. has over $35 trillion in home equity currently right now. The rising housing prices
	...

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