Goldenhue22

I totally forgot to post that the interest was tax deductible, I was in a hurry. And you could realisticly expect 33% of your interest back in your pocket at years end. No one mentioned the equity line of credit so I was wondering if I was the only one. And to answer your question, no, you can't take out 2 lines of credit on the same house. However, equity lines are variable as to the amount your house/townhome/condo is worth. The cool thing about equity lines is that they are on a sliding scale. So let's say you have a 100 K line of credit, and you already took out 80 K, leaving you with 20 K remaining. Once you start paying back your loan (at a ridiculously low interest rate (which is tax deductible)) your line of credit increases all the way back to 100 K as the loan is being paid off. Then you can take out another 100 K loan, or whatever. I probably could have written that better, but I think you catch the idea. I'm just wondering why no one else even mentioned the idea of financing their car this way, assuming they have property of course and live in the US.

Elara

Well, it would be pretty silly to take the loan from USAA when I could get it cheaper elsewhere, but there are other advantages to having a place like USAA fund it. And I've heard enough stories about loans that have been sold and the problems that can (not will) arise that that in itself will make me finance a house through one of the two. But no, I most likely wouldn't use a variable rate (I'm not a gambler)- I just like knowing that if nothing else, I'm guaranteed to be financed one way or another. I also belong to AAA and Costco, so I should have a pretty good selection of low APRs to choose from.

wakeech

heh heh heh, ohhhh those intrest rates. rates ARE pretty low right now, but i could easily argue that they could drop even lower based on a few financial indicators, just as easily as i could argue for a rise... it's so so hard to tell.

but yes, if you're adverse to risk, get the (obviously lowest possible) fixed rate, and if you're comfy with riding the wave and are positive about the (highly speculative) future, then go with the variable rate.

VWjet

Interesting... for the last bracket (61-72 mos), the rate quoted was 7.17%. Riiiiiiigggghhhhttt!!! I don't know what's up with that?!