Financing a used car- dealer or bank financing?

[HelloDoggy]

I see a lot of suggestions for HELOCs…best rate but does come with a cost of land title registration along w/ possibly an appraisal on your home.

Good idea for large purchases. All depends on how much you are borrowing and you can calculate if it's worth paying those fees up front.

Bank rates will depend on credit, dealer rates depend on what they can get from their bank rates on used cars. Just ask and negotiate. No real right answer here.

[Cos]

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[max_boost]

Originally posted by HelloDoggy
I see a lot of suggestions for HELOCs…best rate but does come with a cost of land title registration along w/ possibly an appraisal on your home.

Good idea for large purchases. All depends on how much you are borrowing and you can calculate if it's worth paying those fees up front.

Bank rates will depend on credit, dealer rates depend on what they can get from their bank rates on used cars. Just ask and negotiate. No real right answer here.

Unless things have changed but you just basically sign here and they waive the fees for legal docs and appraisal. Good way to consolidate things, never have to take out another loan again unless it's BMW 1.9% lease then no brainer lol

[ExtraSlow]

Yeah, usually no additonal fees if your HELOC is witht he same people who have your first mortgage.

[avishal26]

Originally posted by Cos


Yeah and they changed it, I think you have to have at least 45% equity now. It used to be 80% now you can only have max 65% mortgage on the property. So I have heard anyways, I've never gone for one.

Actually that is not entirely true.

Your maximum HELOC amount is still at 80% of your property value.

However, of that 80%, 65% is the maximum you can borrow on a revolving credit with no amortized payments (i.e. you pay as you wish, as long as you pay the monthly interest as a minimum). The remaining 15% (over and above the 65% you have borrowed) has to be amortized on a monthly payment plan.

Therefore, you can still get a HELOC with a revolving credit line (available credit goes up as you pay more of your mortgage and minimum payment is only the interest) as long as you own 20% of your house or more.