Quote:
Originally Posted by RodKnock
 So, instead of your house, colateralize the loan with you savings and 401K?
Yes, on floors and caps. Every lender is different and every customer is different. Lending is based on FICO's.
Again, assets minus liabilities equals net worth. We do not have a complete picture of the borrower/Kirkham buyer. So, blame the 98% of the rest of us for the excess of the 2%.
Reasonable and prudent leverage is fine. |
So you would rather lose your home (and uproot your family) than your savings account? If you use savings to guarantee a loan and get into a situation where you can't repay the loan, then the lender takes what is owed from the guarantee account. If you could have paid cash in the first place, you won't mind having them take it from savings.
If you can't pay back a HELOC, YOU CAN LOSE YOUR HOME! Ask your wife which one she would prefer.
Why would anyone want a variable interest rate to purchase a car. That 4% rate right now could be 9% in a year with no end in sight.
If you must borrow money to purchase the car, put up a large down payment and get an old fashioned car loan with a fixed rate and be done with it! No surprises, and if the worst happens, you will only lose the car, not your home!
No brainer!