Auto Leasing Guide
Go to LeaseGuide.com now !

Home Equity Loans and Mortgage Refinancing Richland 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
 
Pacific Motor Co
(253) 572-7214
1408 Martin Luther King Jr Way
Tacoma, WA
 
TagMaster North America
(253) 238-1421
15 Oregon Ave Ste 305
Tacoma, WA
 
Honda of Seattle
(206) 382-8800
1015 Olive Way
Seattle, WA
 
Toyota of Seattle
(206) 382-4300
2121 8th Ave.
Seattle, WA
 
Robert Larson's Automotive Group-Larson Toyota
(253) 475-4816
7815 S Tacoma Way
Tacoma, WA
 
Handan II, Inc
(253) 922-8280
1801 Alexander Ave
Tacoma, WA
 
Mid-Valley Chrysler-Dodge-Jeep, Inc.
(509) 882-5005
501 E. Stover
Grandview, WA
 
Auto Outlet of Tacoma
(253) 473-1900
3430 S Tacoma Way
Tacoma, WA
 
Les Schwab Tire Center
(509) 773-5000
606 East Broadway
Goldendale, 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...

Click here to read the rest of this article from Lease Guide