Car Loan vs. Home Equity Loan?
Saturday, May 1st, 2010 at
1:46 pm
I recenly got approved for a home equity loan. I am purchasing a car. I can get the home equity loan for 6.6% with upfront cost for the loan at $3900. (A 30 year loan which I plan to pay back MUCH sooner). I won’t pay enough interest to get a tax benefit so I am wondering, am I better off to pay a higher interest rate and secure a car loan? Not sure how to firure in the 6.6% plus the $3900 cost to get the house loan. Any advice would be greatly appreciated. I am borrowing $40,000, which is more than I need and most likely will hang onto the excess money and put it back toward the mortgage loan. Before you ask, I borrowed more than I need as most lenders don’t want to mess with a $20,000 loan. Thanks!!!
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Tagged with: Interest Rate • Lenders • Purchasing A Car
Filed under: Home Finance
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I am confused. You are getting a home loand at 6.6%. Are you asking if you should use the extra to get a car? I mean, your first two sentences: “I recenly got approved for a home equity loan. I am purchasing a car” They are two very different loans.
EDIT: If you are looking for a lower interest rate, the 6.6% home equity is not the way tog go. Basically, if you get a car from a dealership, you can tell the financial department that you want to use ABC Bank and you want XYZ interest rate. My new car rate was 4.99% on my car because I told them who I wanted to finance through and how much I wanted my interest rate to be. What do they care? They made a sale and it is up to the bank to agree or lose the sale as well.
de lening van de huisgelijkheid heeft gewoonlijk lagere rentevoet, zodat zeg ik voor de lening van de huisgelijkheid ga