June 13th, 2006, 09:31 AM
|
#1
|
|
Formerly Chandler Mike
Join Date: May 2002
Location: Chandler, AZ
Posts: 16,343
|
Finance question
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.
|
|
|
|
June 13th, 2006, 09:55 AM
|
#2
|
|
Registered
Join Date: Sep 2002
Posts: 1,300
|
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.
|
|
|
|
|
June 13th, 2006, 09:57 AM
|
#3
|
|
Registered User
Join Date: Apr 2003
Location: Maricopa, AZ
Posts: 13,861
|
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....
|
|
|
|
|
June 13th, 2006, 10:16 AM
|
#4
|
|
Formerly Chandler Mike
Join Date: May 2002
Location: Chandler, AZ
Posts: 16,343
|
Thanks guys
|
|
|
|
|
June 14th, 2006, 09:57 AM
|
#5
|
|
Unregistered User
Join Date: Mar 2003
Location: Hicktown, AKA Buckeye, AZ
Posts: 6,039
|
Quote:
|
Originally Posted by 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.
|
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.
|
|
|
|
|
June 14th, 2006, 11:07 AM
|
#6
|
|
Krycek, Alex Krycek
Join Date: Oct 2002
Location: Harrisburg, PA
Posts: 10,656
|
Quote:
|
Originally Posted by HeavyB3
Should never have gotten into debt in the first place *BIM*
|
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
|
|
|
|
|
June 14th, 2006, 12:18 PM
|
#7
|
|
Formerly Chandler Mike
Join Date: May 2002
Location: Chandler, AZ
Posts: 16,343
|
Quote:
|
Originally Posted by HeavyB3
Should never have gotten into debt in the first place *BIM*
|
If that's the case, I'd still be living in an apartment with my old '83 Plymouth Horizon... |
|
|
|
|
June 14th, 2006, 01:17 PM
|
#8
|
|
Unregistered User
Join Date: Mar 2003
Location: Hicktown, AKA Buckeye, AZ
Posts: 6,039
|
Quote:
|
Originally Posted by Chandler Mike
If that's the case, I'd still be living in an apartment with my old '83 Plymouth Horizon...
|
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.
|
|
|
|
|
June 14th, 2006, 01:47 PM
|
#9
|
|
Don't Stop Believin'
Join Date: Feb 2004
Location: Goodyear
Posts: 5,068
|
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.  |
|
|
|
|
June 15th, 2006, 06:15 AM
|
#10
|
|
I'm Coming for YOU!
Join Date: May 2002
Location: Las Vegas
Posts: 45,177
|
Quote:
|
Originally Posted by HeavyB3
Should never have gotten into debt in the first place *BIM*
|
I dont care who you are! Thats Fricken Funny!  |
|
|
|
|
|
Linear Mode
