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Home Equity Loans and Mortgage Refinancing Blue Bell PA

Home equity loans and home line of credit loans are often a good way to finance the purchase of a car. Refinancing your mortgage is another option. However, understand the benefits and the risks before making a decision.

Pennsylvania Auto Finance
(215) 798-0752
1650 Market Street
Philadelphia, PA
 
AutoTrakk
(888) 689-7117
1500 Sycamore Road Suite 200
Montoursville, PA
 
Skyline Auto Sales
(717) 597-5257
131 South Antrim Way
Greencastle, PA
 
T.J. Mcgeehan Sales & Service, Ltd.
(570) 443-8224
Rr2 Box 101D
White Haven, PA
 
Cunningham's Body Shop
(717) 597-2624
12719 Williamsport Pike
Greencastle, PA
 
Flagship Credit Corp.
(800) 707-0114
3 Christy Drive Suite 203
Chadds Ford, PA
 
AutoLoansInPennsylvania.com
(717) 884-9911
Harrisburg, PA
 
Fairway Motors
(570) 956-9807
Rt. 309 North, P.O. Box K
Hazleton, PA
 
Greencastle Lube Center
(717) 597-2500
10680 Antrim Church Road
Greencastle, PA
 
Antrim Auto Parts
(717) 597-3118
48 South Antrim Way
Greencastle, PA
 

Home Equity Loans and Mortgage Refinancing

Looking for a source of cash to pay for a new car? Use the equity you already have in your home. Home equity loans and mortgage refinancing are often good solutions for people who need money to purchase a car. However, to use this type of loan for a car purchase, you should have good financial discipline and a stable lifestyle — and understand how such loans work.

Two different kinds of home equity loans - which is better?
A home equity loan is a conventional loan in which you borrow against your net financial interest, or equity, in your home. Such loans are for a fixed amount, have a fixed interest rate and a fixed term. The loan is paid down with monthly payments that cover both principal reduction and interest expense. The primary difference between this type of loan and a traditional car loan is that your home is the collateral, not your car. Should you default, your home could be at risk.

In comparison, a home equity line of credit (HELOC) is a variable-rate loan that is set up for a specified maximum draw amount. You can use (draw) any or all of that amount over a specified period of time, usually 5 to 10 years. There is also a specified repayment period, usually 10 to 20 years. Typically, a borrower only pays interest during the draw period, but must pay both principal and interest afterwards. Up front costs are typically fairly low. Interest rates are tied to the prime rate which can vary day to day. In this sense, HELOCs are like a...

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