HelpMeHelpU

I was able to get 1.49% for 36 mos. from Lightstream, because they were willing to price match Penfed. Caps out at $100k by company policy. Great, no hassle, no lien loan.

VGM911

Isn't it true that if you default on the home equity loan, your house (which collateralizes the loan) can be sold by the lender to satisfy the loan? If that is so and if it were me, I wouldn't put my home at risk just to buy a car.

Alexandrius

I applied to attempt to refinance my current loan to make it easier to sell my car (attempted to get my lien removed in the process). I was approved, however It looks like I either have too bad of credit for that (750+ still though) or they don't offer no collateral refinances...


Does anyone have input on that? If it's not a policy of automatically denying zero-collateral finances, I'll get a consigner and pay them a fee to free up the title.

Alexandrius

Yes their loan to value would be absurdly low given most home prices are far beyond most car prices.

Nick

If it's a no collateral or no lien loan why are they asking to put your house up for collateral. I can understand the car as collateral but not one's home. What am I missing?

Nick

I believe if you use home equity loan funds to buy a car, the interest is not tax deductible.

Stil_1

I believe he was replying to Freeman's post above.

VGM911

Thanks, Stil_1.....I was, in fact, responding to Freeman's post as you noted.

tubwreck

I believe interest on equity loan funds is deductible on Schedule A on loan amounts up to $100K used for any purpose, BUT not deductible under AMT unless funds used for primary residence (purchase/repair/improve).