Finance question

[Mike Olbinski]

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.

 

[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....

 

[Mike Olbinski]

Thanks guys

 

[HeavyB3]

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*

 

[SirStefan32]

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

LOL

 

[Mike Olbinski]

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...

 

[HeavyB3]

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

 

[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]

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

I dont care who you are! Thats Fricken Funny!