I have excellent credit. I own a home with a lot of equity and have a home equity available with a good rate. Is it better to take out an auto loan or to put the debt on the home equity?
The answer to your question might seem easy — choose the home equity loan for the tax benefits — it is not always that simple. Consider the benefits and risks before choosing a home equity loan to finance your new car. A home equity loan or home equity line of credit (HELOC) is a popular way to pay for a home renovation, but low-interest loans may also be an enticing choice for a major purchase, such as a new vehicle.
Here are some pros and cons of a home equity loan in comparison to a conventional auto loan:
Whether you opt for a HELOC or an auto loan, be sure to shop to find the best deal. I hope the information provided helps you Find. Learn. Save.