Just curious, has anyone bought thier car using a credit line on thier house? It sounds attractive because, generally, you will have a lower interest rate, a much lower payment (spread out over 20 years or so), and can pay extra to pay off the capital. You can also write off the interest on your taxes.

Anyone done this?

 

I wouldn't want to pay for a car for 20 years.

What's the total cost of the loan??

 

Maybe when I get my BMW 760Li.....

 

When you add them up, you'll end up paying more. I was thinking about doing that before. Its not worth it. Instead why don't you try Capital One finance? I got 5.6% and my credit isn't that good. And I also buying power at the dealer.

 

well, it's spread out over 20 years, it just gives you the flexibility. say you run into really financial hard times for whatever reason, the bank wont be calling you for $300+ or whatever dollars. Your minimum amount is really small. You would make your monthly payments at a comfortable amount, and whatever is over minimum would go to capital.

 

I save my home equity for major emergency use only.

I financed my TSX through Costco's program (which uses Capital One). Another great place to look is credit unions, as they sometimes have low rates.

 

I didn't exactly use a home equity line of credit when I bought my car, but when Acura was offering 2.9% financing, I was able to get my credit union to match the interest rate and for $100.00 fee, they converted the loan to an auto equity loan, which means I can write off the interest on the loan just like I do on my mortgage interest on the house. The auto loan is for five years, so it's not tied to my mortgage loan, I just get the benefit of writing off the interest.