Should I take out a home equity loan or 2nd mortgage to pay off my car?
Home Mortgage
sjbe1 asked:
My lease is up in May. I want to buy the vehicle and be able to take the interest paid on the loan off my taxes. I would be financing approx. $7500.00.
Yolanda
My lease is up in May. I want to buy the vehicle and be able to take the interest paid on the loan off my taxes. I would be financing approx. $7500.00.
Yolanda
July 29th, 2009 at 3:13 am
Lisa
Only if that is the best interest rate you can get.
July 31st, 2009 at 2:23 pm
Francis
what happens in circumstances that prevent you from making your car payment? You’ll lose your house. by seperate financing for your car, you’ll just lose the car.
If by chance you want to pay off your h e l c loan off early, most have a penalty amt to be paid if paid off prior to 5 years.
August 1st, 2009 at 11:07 pm
Alicia
At first glance, a home equity loan would make sense. Compare the interest cost of that (allowing for the tax deduction) with the interest cost of the car loan (not tax deductible).
August 3rd, 2009 at 11:58 am
Teresa
If the rates and principal is right for you, then yes it may be a smart move; however, there are other finances available for this kind of loan that will rely on your credit rating and base income., But you did express a key note that all should pick upo on and that is how this relates to your taxes and being able to deduct the interest. Good Thinking.
August 5th, 2009 at 10:27 pm
Jamie
Depends on your circumstances and desires of course. But I can’t see putting your house at risk for $7,500.
I’d go for a conventional loan, and do a 5 year depreciation on the worth of the vehicle.