Buying toys

[Roy B.]

A friend of mine is buying a Corvette and asked me how he should get a loan.
If you open a equity line on your home you can write off the interest.
Most banks dont charge for this!
You have the bank re-a praise your house and ask them to start a {money line checking} on the equity amount , which is a second that don't upset the first. Home interest today is low , lower then any out side loan company can get you.Then your talking CASH when buying and may get a better deal. You can pay interest only or make "large cash amounts" with no penalty on your money line acount and lower the payment that you cant do on the first. And as I said write of the interest.

The best part once done depending on the approved (money line checking) amount, you now can write a check any "time" from it or "never" use it but it's nice to know you have it with out going through some later bank loan down the road to get fast money if needed right now!
I just re-did my home loan at a fix-price 30 years at %5.

[Terry D.]

Re: Buying toys

Roy

Yes a home equity is a great idea ( I also took advantage of this for a storage condo) but you must have better banks out there if you got a fixed 5%.
Terry

[Michael L.]

Re: Buying toys

Terry, with the Fed dropping the prime, I think rates will continue to drop... Much to the dismay of my money market and CD accounts...

[Paul L.]

Re: Buying toys

Roy,
With respect I cannot imagine why anyone would put their home equity at risk to buy toys. It's your home for goodness sakes. I'm roughly your age and would never consider that. Have you not seen the markets lately? People bailing out of primary residences because of what you seem to advocate.

[Michael G.]

Re: Buying toys

Paul,

I used the home eqity line of credit to purchase my corvette. Although you are right that they are just one of our toys, It's a rather special toy to me.
Unable to afford one when they were $5,000.oo I have watched as the price for a good surviver climbs to $20,OOO.oo. Each time I had my "Vette Fund" up and ready, something would come up more practical and down it went. The use of home equity is a serious move. But done with much thought of the possibilities of the unimaginable happening and having a back-up plan (liquidate the puchase--also unimaginable) can elimiate the danger.My brother is one of those forced to get out of his latest house simply because he bought too much house at too high a price and was not willing to give up his toys.I feel for the many that are in a bad situation from taking shady loans or having something financially catistrofic happen to cause them to lose there home, but a good portion just did not have all there "ducks in a row" before taking the plunge.

Mike