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Is it better to get a home equity loan or line of credit for a car and some home improvement?

Public Comments

  1. The most important factor would be costs and or int. rates. HELOC's are at 8.50% and that's rather high. If you have good credit you might finance your car through the bank at 0.0% to 4.9%. Or your other option would be to REFI and get CASH OUT if you have the equity in your home. Look around and get some quotes so you know you are getting the best deal. Good Luck!
  2. If you get a home equity loan you will be paying for the car much longer than you will be paying for a auto loan. The only benifit to the home quity loan is that the interest you pay on the loan is tax deductible. I personally don't think that is a great trade off...you could buy a "green" automobile and get a good or better tax break and probably a good interest rate too!
  3. If your credit is good enough to get a line of credit with good interests rates, go with it. Equity is an option, but make sure you calculate every fees. A line of credit is more flexible.