Extra money from home loan to purchase vehicle.?
I am looking into going in half with my sister to purchase a home which we will rent out. Currently, I am also looking into buying a new vehicle. What I was thinking of doing, is adding the money I currently have for the down payment of the vehicle to my share of the down payment to the house, and taking out a home loan with an extra 30K to purchase the vehicle. I read online that home loan APR's are lower than vehicle as well. Thing is, is it possible to get the 30K in cash so I can purchase my vehicle, and if so, how? I am also open to other ideas any of you may have in mind which would be better for my situation. I would like to purchase the vehicle sometime this summer, and the house as well since my CD will come due. (house first, then car). Thanks guys!
- 1 decade agoFavorite Answer
The best thing for your dollar and your credit, which when added together equal your quality of life, is to not finance your vehicle on your homes credit. You have a 50% owner who is responsible as you must be to not do this unless you have no other option. Right now auto loans should be dropping and they will be slower to raise as the banking industry just took a large hit in mortgage losses. They will be reluctant to drop thier rates until they have recoverd their losses and a good bit more. The auto loans will be a better rate and a easy auto pay trade line on your credit report really helping you on your next home purchase which is what this is all about. So if you have a lump sum to put down I would say to not put down more than 20% - 40%. Let the banks money work for you and let your money work for you. Get yourself a nice yeilding account to off set your mortgage interest rate so you lose nothing. talk to some credit unions about this. They have great programs like low rate secured loans and CD's.Source(s): 5 year mortgage loan officer
- Anonymous1 decade ago
1st never ever buy ahouse with some u are not married to. never ever sister bro mom dad cousins. u and they leave u open for legal nightmares and major financial losses.
as for paying on a car fro 30 yrs when u'll get rid of it in 10 does that make sense to u.?
buy the book 'house buying for dummies' so u can understand the legal problems u are looking to get.Source(s): foreclosure server, saw d'movie & ending
- MarJoeLv 61 decade ago
Do you realy want to pay for that car for thirty years. that's a bad idea.