OldGuy

I just got back off vacation and I have anxiously been
awaiting my Home equity Line of credit paperwork
to finish off my TT purchase and get that baby home.
The paper work shows up today and I am yelling and
singing and talking with a german accent as I look
for a pen to sign that stuff and fedex it off ASAP!
I would have the check tommorow!!!!!
I musta looked like Tom Cruise in Risky business
sliding around on wood floors in my house in
my socks and underwear. I sit down down with
my wife, who is wondering what I am doing in
just underwear and socks, to sign the stuff and
she notices the interest rate is 8.1 %!! then she
notices its VARIABLE. WTF over!!?? My broker
said it would be FIXED and 5.99 to 6.99%. The
wife who is our CFO calls off the deal! Now I got
to start over! Any bankers or others know where
we can go for a 90% loan to value for a decent
interest rate? Equity line of credit? Fixed?
I had to put my pants back on
and now I am pissed! I waited 3 weeks for that
and I could of got a better deal from the pimp
in Risky Business! I have excellent credit so
i dont know what happened other than my
real estate broker wanted to make some cash
off me. My TT is safe since I put a deposit on
it. Sheesh any ideas??ANyone else have to be
so dang creative to make their 993 dream happen??

TIA
Older (now) Guy

Edward

OG,

I went the same route you did to make my "dream car" happen. Sorry that I have no wisdom to offer you, though, other than I spent the better part of a day shopping Home-Equity rates. At least the car you want is "safe," and though you may have to work a bit more to get it, the reward will be that much more sweet! Here's to making it happen!


Edward

DJF1

I got my loan through people first. Great rates, no hassle, 10% down

Ray Calvo

Not in La-La Land. Here in Steelertown I remortgaged my house for a 4.375% fixed rate about 6 weeks ago.

DC from Cape Cod

The rates of 6+ weeks ago are gone now - they are up a solid 1.5% over that time frame.

The lows were even lower than 4.375% (0 points) at the lowest point but the Mortgage Backed Security market has taken huge hits.

Although I don't broker loans in your state, I would be happy to make some suggestions for your situation if you want to email me the specifics.

Doug
salesmanager@shorelinemortgage.com

911

OG - check your PMs.

mooty

most revolving lines are variable rate, unless you have some tight connection, it's pretty tough to get fixed rate on "lines"...
and of course, damn rate just shot up 1.5 - 2.0% in last 4-6 weeks.

hddude

In the few weeks since I found this forum, it has been interesting reading about the dramas involved in finding the perfect car for the perfect price and perfect loan. I always kick myself when I trade cars with a dealer realizing I probably could get more from a private party, but my luck one of you guys would be my customer. OG, I'll bet the TT owner is about to slit his/her wrist, and you think you have problems.

hn

Old Guy,

We have been a repeat customer of Emery Financial in Newport Beach. They broke our jumbo loan to one non-jumbo and the rest is on a credit line. They are very agressive and fast. We have refinanced our loan with them 3 times within the shortest allowed period (min is 3 months between each, I think).

Berkley

Old Guy

with no disrespect for Doug's business, I would go direct to a quality lender, i.e. a bank in the top ten... fixed rates are still being offered and the service can be very quick........surprised you didn't have rate protection

the after tax cost will not cause gas pains on a 100 to 150 basis points.... I was offered a rate of 7% on $300,000 for a BOAT loan on Tuesday, but the loan to value ratio was only 50%....

I have been in investment banking and venture cap. for almost 30 years....you can't worry about yesterdays rates....this not a big deal...I would be more worrie about getting clean title etc from the seller, whom I know to well

Good Luck

sy308

I have never heard of anyone using home equity to buy a car. My position would be in total disagreement with this choice. My CFO would be resigning with half of that equity should I propose a scheme like you did. Good for her to cancel the deal! Most people would do home equity and reinvest in remodeling, which would then increase the value of the home later. Hey, that car value is going down and you worked hard to earn that equity. I guess you might use the money for just about anything. I am a cash kind of guy. Part of ownership is to maintain the car, which will cost you several thousand dollars on the average in insurance, maintenance and repairs every year. I figured all this together was way up there on the luxury scale and I am not going to pay interest on a luxury, only a necessity (like my home). That means to me I really can't afford the car and worse yet can't afford to **** off my CFO. Good luck.

mike cap

sy308

You've never heard of anyone buying a car on a HE credit line? What planet have you been living on? Old Guys's plan is perfect, except that he didn't have the HE line established ahead of time.

A pre-approved HE line is simple, fast, low-rate and makes use of the excess value of your asset to it's fullest. Not to mention the fact that the interests costs are a deductible expense.

I've purchased or partially funded numerous cars and airplanes using this method and it's the best financing method available. My home mortgage and HE line are one facility and I've let it float at prime for the last two years. I can lock it in at anytime at prime + 1.5% and may do this if the Fed screws up the economy AGAIN by raising rates too soon.

The guys on this forum are well educated professional people and know how to manage their finances. Many of them are docs or attorneys or business owners. It goes w/o saying that they're not going to go off on a lark and spend $80k on a car, just because they might have a HE line in place and the cash readily available, burning a hole in their pockets.

You may want to direct your future comments to the Dodge Ram Truck forum next time. I understand that the Ram is the most repo'd vehicle in the US. Those are the guys that are spending money they don't have.

By the way, why not purchase a Rennlist membership with all the interest money that you've saved by being "a cash kind of guy"?

stedge

Old Guy - what a PITA.

Move on, no reason you cannot find a fixed rate, etc, etc.

Re: all the comments on cash vs. HE, do what you are comfortable with and know is safe for you, of course. Do be aware of the AMT, because if you start cranking up deductions (lots of stock losses, donations, etc), you may get a little surprise at some point. Sooner or later, the govt says you can't deduct much more - unless, of course, you're rich!

Best of luck.

DC from Cape Cod

Berkley - no worries mate. I have zero connection with this situation aside from some free advice I offered after the fact.

On a side note - most lawyers and doctors are horrible with money...that is why they need people like us. I would only use a Home Equity loan to buy a depreciating asset if you plan on paying the loan off prior to disposing of the asset. It is a great way to manage the debt AS LONG AS the debt goes away when the toy does.

Greg Fishman

Well said Mike.

Debt is not always a bad thing. Look what it is going to do for me.
I just sent some nice guy in Nigeria the proceeds of my 401K and mortgaged my house to the hilt because I know that he is going to come through with that $100million his family is owed from the gov't of Nigeria and pay me my 50% for helping him out. I just know it.