Chandler Mike

What would you guys do here?

I've got the new truck, with a decent sized loan (over 20K).

Now, I have about 100k in equity in the house right now. I am using a line of credit to help pay for school, which shouldn't amount to more than 5-8k over the next two years.

Would you pay off your truck loan with your equity, thus giving you tax deductable interest, and maybe a lower rate?

Just curious what the opinion is out there.

__________________
"Pop Critics - Movies, TV, Music, Books" - http://www.popcritics.com
Total Rainfall at Chandler Mike's in 2008: 7.55 inches (as of 11/27/08)

Gizmo Williams

Depends on alot of things.

If you received a promotional rate of 1.99-5.99% from the dealer or a bank on the auto loan, it will be hard for the HELOC to be a better deal even with the tax savings.

Also, the HELOC rate is variable so it the rate will rise everytime prime changes....so your payments in the future are a bit uncertain with the HELOC.
When prime was down around 4.5...the HELOC was a much better deal for auto purchases than it is today.

One advantage of HELOC is that you can pay interest only for the first 10 years, but on a car that is more of a disadvantage. You want to pay the car off as fast as possible since it will depreciate quicker than you can pay it off and you don't want to make payments on a piece of junk 6 or 7 years down the road.

Divide Et Impera

Prime is at 8% right now, so consider that if you have a HELOC. It will probably continue to rise over the next couple of years as well....

Also, if you have an ARM loan, consider re-financing it to a fixed loan. If you need a loan officer, PM me....

Chandler Mike

Thanks guys

__________________
"Pop Critics - Movies, TV, Music, Books" - http://www.popcritics.com
Total Rainfall at Chandler Mike's in 2008: 7.55 inches (as of 11/27/08)

HeavyB3

Should never have gotten into debt in the first place *BIM*

__________________
Originally Posted by HeavyB3
I wasn't serious in my post.. I don't really give a crap.

SirStefan32

LOL

__________________
"Don't try to threaten me Mulder! I've watched presidents die."

"If people would know the things I know, we'd all fall apart."

"Once again, tonight, the course of human history will be set by two unknown men standing in the shadows."

Cigarette Smoking Man

Chandler Mike

If that's the case, I'd still be living in an apartment with my old '83 Plymouth Horizon...

__________________
"Pop Critics - Movies, TV, Music, Books" - http://www.popcritics.com
Total Rainfall at Chandler Mike's in 2008: 7.55 inches (as of 11/27/08)

HeavyB3

LOL Yeah and I'd still be saving to go to college driving my 1989 Ponitac Sunbird that couldn't go 3 miles without crapping out

__________________
Originally Posted by HeavyB3
I wasn't serious in my post.. I don't really give a crap.

Bada0Bing

I guess I would still be working at Chili’s and riding my little Ninja 250. Having a son while trying to go to school puts a damper on how much you can work. Student loans don't bother me a bit.

Shane H

I dont care who you are! Thats Fricken Funny!

__________________
“They said the road comes through Seattle. We came through here and took care of business.” Anquan Boldin