Financing Options

[1ntCobra]

Originally Posted by 1795

If you are set on taking out a loan, and it is the only way to have your dream of owning a cobra replica, then the best bet would be to take out a home equity loan if there is enough equity in your home. At least you will be able to write off the interest. I don't see too many lenders risking a loan on a pile of stuff that needs to be assembled before they can get their money back if you default.

It is a risk and if you do not complete it you will still have that monthly payment to remind you of it.

As someone who apparently has hundreds of thousand in home equity and has a home equity line of credit, I have occassionally considered it is possible to purchase a Cobra replica, like an ERA (or more likely an FFR) with my line of credit and have a reasonable monthly payment. But then I remind myself that I have 1 kid that just finished college and another one still in college and decide it is not a good idea at least for now.

I also understand that home equity loan interest not used on the house is not deductible. And that is easy enough to report on the tax return correctly.

Something that seems more realistic is in a few years when both kids are done with college and out on their own is to downsize the house and cash out some of the equity without the need for a loan.