“I’m very hesitant about it,” Brooke said in the call. “In fact, my family gives me the name ‘dream crusher.’ because I’m just not a risk taker.”
But co-hosts Jade Warshaw and John Delony were squarely in Brooke’s corner when it came to the idea — and on the prospect of taking advice from “finfluencers.”
“Hey, here’s my big problem number one, Brooke: Your husband’s quote, ‘following a TikToker,’” Delony laughed.
Brooke agreed, saying that she looked at the numbers and didn’t see a way that the plan made sense.
What is a first-lien HELOC?
Whereas HELOCs are typically second mortgages, a first-lien HELOC is a line of credit that replaces your existing mortgage.
If you defaulted on a home loan, the first-lien lender would be first in line to be repaid — traditionally the mortgage lender. So, when you take a first-lien HELOC, it moves into first position.
According to consumer credit reporting agency Experian, people who choose a first-lien HELOC often do so for “access to equity and initial interest-only payments,” using the money for home renovations, investments or for debt consolidation.