On Jan 21, 9:08*pm, "Mark" wrote:
"Phisherman" wrote in message

...





On Thu, 21 Jan 2010 09:15:32 -0500, wrote:

On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows homeowners
to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases, home
improvements and other gifts and purchases. ...

I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get a
3% rate or less. *An equity loan should be used for required repairs
only, that is, if you want to be financially responsible.

What's the significance of 3%? *Are you figuring that at that rate you'll
pay nothing when you figure in the tax deduction?

As for the value of an Equity line, there are many pros and cons with them,
the least of which is the fact that you are using your home as collateral
for the purchase. *Generally as has been mentioned, these purchases made
with lines of credit often depreciate long before the loan is paid off,
particularly since they are often an an interest only payment plan for some
period of time. * *So, bottom line, a LOC is a good option when used for
such things as home improvements or major repairs where the debt is used to
improve the object used as collateral, but not a great idea when used for
purchases such as a new car that will probably be sold long before the loan
is paid.- Hide quoted text -

- Show quoted text -

An equity loan could be a good choice to finance a car, depending on
the relative interest rates and the fact that the home equity loan is
tax deductible, while the car loan is not, unless it happens to be
used for business. The key is you obviously have to have the
discipline to pay down the home equity loan over the same time span
that you would have paid down the auto loan. I do agree that many
people don't.

wrote in
:

On Jan 21, 9:08*pm, "Mark" wrote:
"Phisherman" wrote in message

...





On Thu, 21 Jan 2010 09:15:32 -0500,
wrote:

On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows
homeowners to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases,
home improvements and other gifts and purchases. ...

I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get
a 3% rate or less. *An equity loan should be used for required
repairs only, that is, if you want to be financially responsible.

What's the significance of 3%? *Are you figuring that at that rate
you'
ll
pay nothing when you figure in the tax deduction?

As for the value of an Equity line, there are many pros and cons with
the
m,
the least of which is the fact that you are using your home as
collateral for the purchase. *Generally as has been mentioned, these
purchases mad
e
with lines of credit often depreciate long before the loan is paid
off, particularly since they are often an an interest only payment
plan for so
me
period of time. * *So, bottom line, a LOC is a good option when used
for
such things as home improvements or major repairs where the debt is
used
to
improve the object used as collateral, but not a great idea when used
for purchases such as a new car that will probably be sold long
before the lo
an
is paid.- Hide quoted text -

- Show quoted text -

An equity loan could be a good choice to finance a car, depending on
the relative interest rates and the fact that the home equity loan is
tax deductible, while the car loan is not, unless it happens to be
used for business. The key is you obviously have to have the
discipline to pay down the home equity loan over the same time span
that you would have paid down the auto loan. I do agree that many
people don't.


and the fact that the home equity loan is
tax deductible,

Actually there are conditions for it to be deductable. Used to be
conditional back a few years anyway. Many people just put it down on
taxes and it never gets picked up on but it would not stand the audit
test.

On Jan 23, 11:33*am, Red Green wrote:
wrote :





On Jan 21, 9:08*pm, "Mark" wrote:
"Phisherman" wrote in message

. ..

On Thu, 21 Jan 2010 09:15:32 -0500,
wrote:

On Wed, 20 Jan 2010 22:44:49 -0800 (PST), "Equity & Mortgage"
wrote:

...

A home equity loan, also known as a second mortgage, allows
homeowners to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation,
educational expenses, unplanned emergencies, vehicle purchases,
home improvements and other gifts and purchases. ...

I would guess most home equity loans are used to buy something
that the owner really needs like a vacation or a new car, when they

Home equity loans are not a good idea, that is, unless you can get
a 3% rate or less. *An equity loan should be used for required
repairs only, that is, if you want to be financially responsible.

What's the significance of 3%? *Are you figuring that at that rate
you'
ll
pay nothing when you figure in the tax deduction?

As for the value of an Equity line, there are many pros and cons with
the
m,
the least of which is the fact that you are using your home as
collateral for the purchase. *Generally as has been mentioned, these
purchases mad
e
with lines of credit often depreciate long before the loan is paid
off, particularly since they are often an an interest only payment
plan for so
me
period of time. * *So, bottom line, a LOC is a good option when used
for
such things as home improvements or major repairs where the debt is
used
to
improve the object used as collateral, but not a great idea when used
for purchases such as a new car that will probably be sold long
before the lo
an
is paid.- Hide quoted text -

- Show quoted text -

An equity loan could be a good choice to finance a car, depending on
the relative interest rates and the fact that the home equity loan is
tax deductible, while the car loan is not, unless it happens to be
used for business. * The key is you obviously have to have the
discipline to pay down the home equity loan over the same time span
that you would have paid down the auto loan. * *I do agree that many
people don't.
and the fact that the home equity loan is
tax deductible,

Actually there are conditions for it to be deductable. Used to be
conditional back a few years anyway. Many people just put it down on
taxes and it never gets picked up on but it would not stand the audit
test.- Hide quoted text -

- Show quoted text -


Yes, there are some conditions, but for the vast majority of cases,
not a problem meeting to buy a car. It's deductible if it's your
primary or second home and the loan is up to $100,000. There are
other conditions, ie using it to buy another home or home improvement
where it can be more than $100K and still deductible. So, unless
it's a very expensive car, shouldn't be any problem.