2006-12-08 16:37:00 · 4 answers · asked by Rachel T. 2 in Business & Finance ➔ Renting & Real Estate
Such as to purchase cars, vacations etc.
2006-12-08 16:37:37 · update #1
On the contrary, it would make perfect sense...if the interest rate on your HELOC comes out to be lower than the car loan! It would make perfect sense if you put your vacation on a charge card which we know would have a higher interest rate!
HELOC's are not just for home improvements. They are used to payoff carloans and/or consolidate debts...how would it different for you? If the issue is the increase in payment, would the payment be different if in fact you used it solely for home improvement?
You have the available credit, use it if you have to! That's why you have it! I'm sure when you took out the loan, you knew what the payment would be at maximum!
2006-12-08 17:19:49 · answer #1 · answered by ALEGNA 3 · 1⤊ 0⤋
You can do it if your going to buy something of large value/expense. With this comes BORROWER DISCIPLINE.
Here's a model example If your going to have 40 to50% of loan amount left after purchase. Receive cash/do your purchase/deposit the rest of the cash in a interest yielding money market account/ or like, use this to pay back the loan while adding a comfortable difference toward the purchased item from your monthly income.
Obviously there are many more details to this and a licensed financial adviser should be involved with setting you up from start to finish. example Charles Schwab-New York Life-ect.
2006-12-09 01:25:51 · answer #2 · answered by FMF 2 · 1⤊ 0⤋
It's generally a bad idea to use a loan that will take 30 years to pay off for something other than home improvement.
2006-12-09 00:46:05 · answer #3 · answered by Flingford 2 · 0⤊ 0⤋
No, that's a very DUMB idea. You'll be paying off that HELOC long after whatever you bought with it is used up. Although the interest may be deductible, you risk losing your home if you don't keep up with the payments.
2006-12-09 00:41:34 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 1⤋