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Home Equity Loans and Mortgage Refinancing Kennewick WA

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.

AutoLoansInWashington.com
(360) 489-6000
Olympia, WA
 
Bucky's Muffler, Radiator & Brakes
(253) 627-8267
603 S Sprague Ave
Tacoma, WA
 
WrapJax, LLC
(877) 309-9290
2305 S Wilkeson Ste B
Tacoma, WA
 
Vollans Automotive Inc
(360) 855-1111
487 Metcalf St
Sedro-Woolley, WA
 
Thoroughbred Collision Centers
(253) 473-2888
4112 S Washington St
Tacoma, WA
 
Kay Parks/Dan Meyer Auto Rebuild, Inc
(253) 272-0512
3102 S 12th St
Tacoma, WA
 
Brown's Tire Co.
(509) 882-1262
812 W. Wine Country Rd
Grandview, WA
 
Dent Destroyer, Inc.
(425) 258-5412
P.O. Box 2986
Seattle, WA
 
Powers Motors
(509) 773-5599
835 S. Columbus
Goldendale, WA
 
Walker's Auto Body Repair
(509) 882-4448
806 W Wine Country Rd
Grandview, WA
 

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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