Auto Home Equity

use the equity in your home to finance vehicle purchases

You can use the equity in your home to finance an auto, truck or recreational vehicle. You can use a fixed-rate loan or equity line. It gives you the cash in hand to negotiate best deal.

Below are four (4) quick summary features of home equity lines:

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about home equity financing

Why Your Home Equity

Use a home equity loan for auto, truck or recreational vehicle purchasing:

Recommended Type: Home Equity Loan
Draw Period: request a 10-15 repayment plan
Request: no pre-payment penalties

You've been dreaming of the new car or truck for a long time. Or maybe its time to get you a recreational vehicle to tour the country. A home equity loan can make it happen. You can expect 5 (five) great benefits:

  • super low rate
  • choice of terms
  • power shopping
  • power to negotiate
  • potential tax savings

Why The Equity Loan

The Home Equity Loan is a smart way to finance your new car or truck. Your home equity gives you the power of "cash-in-hand" to negotiate best deal. Plus, you can select the term depending on your budget needs.

You will pay interest only on the amount you borrow, which interest cost may be deducted from your taxes if you qualify. Consult your tax advisor to see if you qualify.

For more detail information and illustrations

(note: links to our companion site

about home equity financing

You Could Use an Equity Line

You will receive "equity line" checks that that can be used to advance yourself a loan up to your approved available balance.

Simply advance the amount you need and deposit it into your money account (or make an online transfer using your bank online banking). You now have cash in hand when negotiating with an auto dealer.

Note that equity line rates are variable and indexed to the PRIME RATE or other rate index.

This means that your rate can increase or decrease whenever the PRIME RATE changes. The rate (APR) is calculated by taking an margin (percentage) and adding it to the PRIME RATE.

The interest (APR) that will be charged to your account will be only on the amount you actually use, not on the total amount of your credit line.

To minimize interest, use your home equity as a bank. View this illustration how this can work.

about home equity financing

Let's Do Some Calculations

Enter the amount you want to pay per month: $
Enter the number of months to repay:

5yr=60 months, 7yr=72 months, 10yr=120

Enter your estimated loan rate (APR): % %
Total Amount You Can Borrow
Payment Difference:
* Calculations are based upon the assumptions you entered. Please note that rounding errors can make a small difference in calculations. Your actual mortgage lending rate may vary depending on your credit quality and lender. The circumstances surrounding your credit and loan qualifications may result in different calculations.

about home equity financing

About the Equity Loan

Home equity loans are fixed-rate loans repayment plans from 10-15 years. You will be advanced a loan based on the LTV value of the home. It will be classed as a second mortgage against your home.

  • One-Time Advance:
    The money is advanced to you when you close your equity loan This advance is an one-time loan, with no further advances made on your account.
  • Fixed-Rate Loan:
    Equity loan rates are fixed and set by the bank. The rate will not go up or down during the repayment period of the loan.
  • Monthly Payments are Fixed:
    Your monthly payments are fixed. The amount and number of payments depend on the repayment terms of your loan. Lenders offer a range of repayment terms, generally from 5-20 years.
  • Repayment Terms:
    You may payoff your equity loan at any time. You need to check the lender's prepayment terms. Some lenders will charge a prepayment penalty under certain circumstances.

If you want to consider a home equity line, view the product features under our home equity module.

about home equity financing

Financing Benefits

You get some great benefits when you use our home equity to finance your auto:

  • Rate:
    start with a super low, FIXED rate contingent on the LTV value of your home and your credit rating. Home equity loan rates can be as low or lower than many new and used auto loan rates.

    Sometimes auto manufacturers advertise rates at 0.00%. But that rate is on vehicles they need to dispose of. Walk into a dealer and request 0.00% financing on a vehicle YOU WANT and hear a different story.

    That's why when you are in the market for a new car or truck, get the rate that is one of the best in the market at terms that fit your budget.
  • Term:
    select your choice of repayment plans from five years or more

    Auto loans generally have a 60-72 month repayment plans— that translates into hefty monthly payments when you consider the price of new cars today

    With a home equity loan, you can set the term for a longer period of time. This means lower monthly payments to start. And if circumstances allow you to pay more each month, you can. That is the flexibility you need to budget your expenses.
  • Power Shopping:
    have the leisure to shop for a car with the financing already arranged

    once you close your equity loan, you can shop at your leisure knowing full well what kind of car you can buy — no more haggling or worrying that your auto loan won't cover the extra features that you would like.
  • Power to Negotiate:
    gain the negotiating power to shop for the best price with cash in hand

    Think about it, no more haggling with the dealer. Simply walk in, pick the car you want, add the features YOU NEED, and negotiate with cash in hand. Watch the dealers roll out the red carpet.
  • Tax Savings:
    reduce your borrowing cost further with potential tax savings for qualified home owners

    Home equity interest may be tax deductible— see your tax advisor for information about deducting home equity interest
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