Auto Loan vs Home Equity Loan Calculator
A home equity loan is a type of second mortgage that allows you to borrow against the equity you’ve built up in your home over the many years of owning it. Once you take out a home equity loan, you can use your funds to pay for a variety of things, including a new car.
When buying a car, you have options. So which one is right for you? An auto loan or a home equity loan? Let’s take a look at the differences between a home equity loan vs. car loan to help you find the best choice with the most savings.
Should I use a home equity loan instead of an auto loan?
Whether you use a home equity loan vs. an auto loan to purchase a car depends on many factors, including interest rates and your financial situation. While it’s true that home equity loans often come with lower interest rates than auto loans, you should determine whether you want to use your home or the car itself as collateral. With an auto loan, the car is the collateral. If you fail to repay the loan, your car can get repossessed. Conversely, if you use a home equity loan to purchase a vehicle, your home is the collateral.
The right option for you between an auto loan vs. a home equity loan to purchase a vehicle depends largely on your financial situation.
Home Equity Loan vs. Car Loan Calculator
Our home equity loan vs. car loan calculator can help you build a better budget and determine which option gives you the most savings when purchasing a new or used vehicle. A few things to keep in mind are the collateral, interest rates, loan terms and loan amounts.
How We Can Help You Afford a Car
When choosing between home equity loans vs. car loans, there are many important factors you should never overlook, such as interest rates and how long it will take you to repay your loan. We can help you find the best loan option for you, helping you purchase a new or used vehicle at competitive interest rates.
Whether you need an auto equity loan based on your current vehicle’s value, a HELOC or an auto loan, we can help you discover your options and get the most savings. Apply for an auto loan online or visit us for financial counseling to help you find the best loan to purchase a vehicle based on your financial situation.