Car Loans

If I am buying a car, should I use a home equity line of credit to pay for it? There are several advantages to use a home equity line of credit to pay for a car (instead of getting a car loan). First, you could get much lower rates than a standard car loan. Also, in most cases, you will be able to deduct the interest that you pay on the loan, which could led to a large amount of savings.

How does a line of credit work? In most instances, you may borrow up to 75% of the appraised value of your home (minus the amount you owe on your home loan). For example, if your home is appraised at $100,000, and you owe $50,000 on the home, you could get a credit line of $25,000 of a credit line.

What are other options for getting a car loan? You could simply refinance your home and take out some of the equity to pay for a car. For example, if you have $50,000 in equity in your $100,000 home, you could refinance and take out $30,000 in equity (while still avoiding PMI). However, you probably would not want to pay this loan over a 30-year term (or even 15 years). So you may consider paying additional money towards your mortgage payment each month so it will be applied to your principal. You could have a loan specialist give you information as to what payments you could make monthly in order to pay off the "car loan" portion of the mortgage in a standard 5 years. You could also get a second mortgage in order to help pay for a new car. This is another option you may want to discuss with a loan specialist. To get more information on refinancing your home in lieu of a car loan, visit the car refinance page or other car search page.

To get additional information on what your options are, contact a loan specialist at 800-930-9201.

Line of Credit or Refinance?

A Line of Credit is simple and you will not need to refinance the entire mortgage. So if the current interest rate is much higher than what you can refinance at, then you should consider getting a line of credit.

Refinance (or second mortgage) - The rates are so low right now, that many people should refinance their home regardless of whether they are wanting to take out some equity or not. So this is a very good option for many people. It can help save them thousands of dollars. Get more information on refinancing your home for a car loan.

If you would like to find some reliable mortgage brokers who deal with bad credit loans, you may call 800-930-9201. Were you looking for a Home Equity Loan or Information on a debt consolidation loan? Other Car Loan Sources: 800-CarLoan - Yahoo Car Loan page