Author Topic: Use Home Equity to pay off car loan?  (Read 995 times)

Giro

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Use Home Equity to pay off car loan?
« on: November 18, 2015, 02:20:08 PM »
I'm paying $30 a month in interest on my car loan.  I plan to pay it off by end of 2017.  DH wants to pay it off by end of 2016, but I'm not in a hurry.  The interest rate is low but I could deduct the equity interest on my taxes.  I'm guessing by using the equity loan, I would save about $100 a year.

Would you get an equity loan for that small amount of savings?  I don't have any other debt. 

No, I don't want to sell the car and buy something else. 

Our taxes are ridiculous and I'm just trying to brainstorm for ideas to save on taxes.

frugaliknowit

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Re: Use Home Equity to pay off car loan?
« Reply #1 on: November 18, 2015, 02:34:11 PM »
What is the car loan balance and interest rate?  Keep in mind Home Equity Loans and or Helocs have up front fees.  Heloc's interest rates are variable (typically with a "teaser" low rate, initially).

Giro

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Re: Use Home Equity to pay off car loan?
« Reply #2 on: November 18, 2015, 05:16:18 PM »
25k balance.  2.9% rate.