Finance question

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savannah_az

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I'm getting ready to refinance my house and am looking at getting a car. Is it smarter to refinance with cash out or refinance as is and get an auto loan? What are your thoughts and why?


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Pharaoh

Pharaoh

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Get a separate auto loan. Do you really want to owe on a car for 30 years? Besides, what happens in 5-10 years when your car breaks down and you have to buy a new one. Now you are paying for two cars. Budget to pay your car of in the standard loan terms. Cars don't last forever.

Go online to bankrate.com and use their calcualtors to figure out the interest paid on the morgage, with and without the car. Then calculate the interest paid on a car with a 3-5 year loan. I doubt you will acutally save money by rolling it into your mortgage.
 
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savannah_az

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Pharaoh said:
Get a separate auto loan. Do you really want to owe on a car for 30 years? Besides, what happens in 5-10 years when your car breaks down and you have to buy a new one. Now you are paying for two cars. Budget to pay your car of in the standard loan terms. Cars don't last forever.

Go online to bankrate.com and use their calcualtors to figure out the interest paid on the morgage, with and without the car. Then calculate the interest paid on a car with a 3-5 year loan. I doubt you will acutally save money by rolling it into your mortgage.
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That was basically my thought process seeing as how both interest rates would be around the same and I'd only have a few small document fees etc on the auto loan which wouldn't really make it worth the added principal on the home loan


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Bderick67

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savannah_az

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Jun 14, 2010
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I hadn't thought about that, does it matter if I take out the equity loan before or after I refinance? Or is there a time limit before I can take an equity loan out after I refinance or vice versa?


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ecoli73

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pretty sure you want to refinance the big loan first because home equity will have to be paid off before a refinance.

Not sure of a time limit though. The fed however basically said the low interest is going to be here for a while by tying the interest rate to the unemployment rate...
 
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savannah_az

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Jun 14, 2010
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Yeah I'd still rather just do it and get it out if the way rather than wait and play the guessing game. If anyone knows If there's a time limit on refinance -> equity lemme know


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