- 14,809
Take out a home equity loan?
EIUL and Mortgages
- Thread starter midwestbroker
- Start date
- 2,152
Disable would indicate you can't work, so go to the friendly Bank and ask them for a equity loan even though you are not employed. In fact, most loans are dependent upon having an income to pay it back. Plus you have already place 20%, the Bank is safe once they foreclose, the more equity you have built up means the Bank will make even more, in fact directly related to how much equity you have in your home will be the Bank's profit margin. Oh my, now I'm throwing mud at the friendly Bank down the street, I should be beaten and quartered!
- 14,809
So how does no equity but a EIUL help? I would imagine in an extreme situation of disablity when you have a lot of equity is sell the house and purchase much less house for cash. No there's no mortgage.
- 2,152
Yet if you have your equity seperated in a fund that can be dipped into, now you have a solution. The only thing that is debateable is the suitability of any one vehicle to use to safeguard your money yet make something off of it.
- 2,152
Uh??? Last position any seller wants to be in, is in a force sale situation. Yet if you equity is seperated you simply dip into the cash, as in the cash value of the EIUL, UL, WL, CD's, Bonds what have you, that is the only real discussion. I don't even except the idea of equity being in the home as even valid anymore outside of emotional ties.
- 14,809
No....the last postion any homeowner wants to be in is having no equity.
- 2,152
Yea, most people hate that no lose scenario. Equity does no one any good, and if fact when you go to sell your home you make no more profit from that home if you have a house paid off or mortgage to the hilt. Home ownership is a emotional need not a good life plan.
- 14,809
Unfortunately there are a lot of people in a situation where a major disablity would destroy them. I don't see how an EIUL would help.
Let's face it, we have people taking out home equity loans for damned near everything. My former partner took one out to buy an S-class AMG Benz for $140,000. I love the "debt consolidation" pitch.
What people need is some type of counsiling. They need someone to sit down with them and play "what if" scenarios.
Let's face it, we have people taking out home equity loans for damned near everything. My former partner took one out to buy an S-class AMG Benz for $140,000. I love the "debt consolidation" pitch.
What people need is some type of counsiling. They need someone to sit down with them and play "what if" scenarios.
- 2,152
Because you don't understand or not willing to credit the living side benefits of the Permanent Life Contract. I agree that money should be saved not spent. I'm not even making a strong case for Insurance over other forms of safe harbor money, just that home equity inside the home is far less safe than if it was in a seperate safe harbor account.
Your home is a place to live. An accountant would never count it as an assets on the books.
Beyond that, this pitch has been used before. I first saw it probably 3 years ago. Doubt it was new then.
A GA with F&G came to town with a dog & pony show. They had a slick presentation and sold software that was basically an Excel spreadsheet. You plug in the client info and the program calculates the ROR on investing the difference in an EIUL.
The package was sold to agents, including a buy in for the mortgage angle (set up with overrides for downline production). Cant recall the price, seems like $200 - $300 or so.
The promoter got in trouble with the NV AG & the banking commission over writing mortgages without a license. Lots of agents got in dutch with their respective DOI over misleading advertising. Several were sued by clients when the numbers didn't pan out the way they wanted. Bunch more lost their license. The only thing that didn't happen (at least to my knowledge) was no one got in trouble for selling an unregistered security.
The thing will blow up once mortgage interest rates start to climb and so does the monthly payment. The ROR on the EIUL is supposed to be enough to pay off the mortgage in less than 10 years. Fat chance of that happening.
If you know some folks with OMFN, email me. I can give you a name to run by them and see what they have to say about this guy.
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