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The home equity line is really preferable. The rate is considerably better than conventional loans and you do have a tax deduction that is not available on traditional consumer loans.
The trap of home equity financing is that you don't want to refinance an entire home to to get funds for your Cobra. The amortization period for most homes is 15-30 years. Your car will depreciate and you, undoubtedly, will not own the car for that long a period. You will end of making payments on something that is long gone; yet, you will be making payments into the future on an asset that is not there.
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