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about: using your home equity
financing auto purchase with your equity
You can use the equity in your home to finance auto purchases with repayment terms that fit your budget — use the loan to negotiate the best deal with the dealer using cash in hand.
If You Have Equity Value in Your Home
you can use the equity value to finance your auto purchase (calculate your equity value). There of several advantages; namely, you control the financing, not the dealer or the auto lender.
Advantages
- Term:
you set the repayment term base on your home equity arrangements. Your repayment terms allows you to meet your budget objectives- Power Shopping:
with a home equity loan, you will have cash in hand to negotiate best price with a dealer.
- Power to Negotiate:
the dealer wants to sell cars. So if you are a buyer with cash in hand, you can negotiate incentives and added features.- Potential Tax Savings:
the interest charges on home equity loan qualify for tax deducations for most homeowners. Discuss your tax situation with your tax advisor.
Disadvantages
- Higher Rates:
Interest rates on auto loans (especially with manufacturer financing) can be lower than home equity loans or home equity lines of credit.
- Your Home as Collateral:
You will be using your home to secure financing; you could potentially lose your home if you fail to meet the loan obligations.
Product Benefits
- select a repayment plan that fits your budget — calculate your repayment options
- find repayment plans that can be from 5-10-20 years, giving you the choice of low monthly payments to start
or use the bank equity program for paying down your auto: see demo
- pay minimum monthly payments or any additional amount when you have extra cash
- deduct interest charges from your taxes if you qualify
- get competitive adjustable rates as low as the PRIME RATE
Your Home Equity is Smart Auto Financing
click to print the home equity comparison sheet to shop lenders
Expect 5 (five) great benefits:
- RATE:
start with a super low, FIXED rate contingent on the LTV value of your home and your credit rating- home equity loan rates can
be as low or lower than many new
and used auto loan rates. Depending
on your LTV position and credit
rating, you can find rates near
or lower than the PRIME RATE.
- sometimes auto manufacturers
advertise rates at 0.00%. But that
rate is on vehicles they need to
dispose of. Walk into a dealer and
request 0.00% financing on a vehicle
YOU WANT and hear a different story.
- that's why when you are in
the market for a new car or truck,
get the rate that is one of the
best in the market at terms that
fit your budget.
- home equity loan rates can
be as low or lower than many new
and used auto loan rates. Depending
on your LTV position and credit
rating, you can find rates near
or lower than the PRIME RATE.
- TERM:
select your choice of repayment plans from five years or more- auto loans generally have a
60-72 month repayment plans—
that translates into hefty monthly
payments when you consider the price
of new cars today
- with a home equity loan, you can set the term for a longer period of time. This means lower monthly payments to start. And if circumstances allow you to pay more each month, you can. That is the flexibility you need to budget your expenses.
- auto loans generally have a
60-72 month repayment plans—
that translates into hefty monthly
payments when you consider the price
of new cars today
- POWER
SHOPPING:
have the leisure to shop for a car with the financing already arranged- once you close your equity loan, you can shop at your leisure knowing full well what kind of car you can buy — no more haggling or worrying that your auto loan won't cover the extra features that you would like.
- POWER
TO NEGOTIATE:
gain the negotiating power to shop for the best price with cash in hand- think about it, no more haggling
with the dealer. Simply walk in,
pick the car you want, add the features
YOU NEED, and negotiate with cash
in hand. Watch the dealers roll
out the red carpet.
- think about it, no more haggling
with the dealer. Simply walk in,
pick the car you want, add the features
YOU NEED, and negotiate with cash
in hand. Watch the dealers roll
out the red carpet.
- TAX
SAVINGS:
reduce your borrowing cost further with potential tax savings for qualified home owners
home equity interest may be tax deductible— see your tax advisor for information about deducting home equity interest- the interest on your home
equity loan may qualify for tax
deductions. That means additional
savings in your pocket.
What auto loan can give you that much power?
- the interest on your home
equity loan may qualify for tax
deductions. That means additional
savings in your pocket.
There you have it:
- low rate,
- choice of repayment terms,
- power shopping,
- negotiation,
- and potential tax savings.
Your Home Equity Loan is a smart way to put you behind the wheel of a new or used car or truck.
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