With the interest rate decline, is this a good or a bad time to get a home equity loan?
Tags:bad time, car loans, equity loan, equity loans, refi,
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I wish to compensate off my automobile loans though we do not know if the seductiveness rate decrease helped or harm me in my attempt. we can hoop the payments though we longed for to save some-more as well as put some-more in to investments. With the equity loan we can do that, though we do not wish to do it if it is the bad time. Please discuss it me your thoughts.
Jeff, great point, though you’re forgetful which refi-s as well as equity loans have been taxation deductable.
Related solution post:
- Where can I find the current average interest rate for home equity loans so I can decide if I want to refi?
- Where can I find average annual interest rate data for Home Equity Loans?
- what is a good interest percent for home equity loan and bad interest?
- When is interest on a home equity loan tax deductable?
- Can I get a home equity loan with Bad Credit. i OWN My home and its fully paid for?
If you don’t make the payments on your car loans, you lose the car.
If you get a home equity loan, then don’t make the payments, you lose the house.
Is it really worth the risk?
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Now for the math:
$10,000 car loan @ 10% = $251.53 * 48 months = $12,073
$10,000 refi @ 5% = $78.75 * 15 years = $14,175
$10,000 refi @ 5.5% = $56.52 * 30 years = $20,347
Which one’s the better deal?
Check your bank. I know some banks in my area right now are offering reduced rates on home equity loans just to get customers. Youre best bet is to meet with someone at the bank, you dont want to be lead into making a wrong decision and drowning in debt. Good luck!
The fed’s interest rate cut only decreases the rate at which bank’s pay for money they need. The hope and expectation is that if banks are paying lower interest, they will in turn lower the interest rates they charge to their customers. If and when your bank lowers its interest rate, then it is a relatively good time for borrowers. The cost to borrow money will go down and people will spend more money. This is what the fed hopes will happen when they cut the rate.
So, if you can get a lower rate on a loan than you could previously, then it would be a good time to get the loan (assuming you need it.)