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I would need more details but in general, the answer is no. If you don't pay your car loan, you lose the car. If you get a home equity loan and can't repay it, you lose the house - big difference.
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∙ 16y ago
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What is the difference between a collateral loan and a home equity loan?
OFFHAND I WOULD SAY THERE IS NO DIFFERENCE. WITH A HOME EQUITY LOAN, THE COLLATERAL THAT YOU OFFER TO THE LENDER, IS YOUR HOME. WITH A COLLATERALISED LOAN, YOU PUT UP SOME OTHER ITEM THAT YOU OWN, MAYBE A CAR OR STOCKS OR BONDS IN ORDER TO OBTAIN A LOAN.
What are possible uses for a home equity line of credit or loan?
A home equity loan allows you to borrow money using your homes equity as collateral. Once you have the loan it can be used for anything, paying off credit card debt, school loans, car loans, or home improvement projects are all common uses.
What would be the purpose of home equity loans refinancing?
There are many reasons why a person would use their home equity as a means to get a loan. A few reasons include debt's, holiday, new car, home improvements etc.
When buying a house can you get a larger house loan so you can pay off some of your credit cards and car?
In a purchase you may not use equity in the property because you do not own it. You can use the equity in your home to pull out cash or consolidate debt only when you own it. == Your mortgage loan can only be up to the amount that the house appraised for, or the purchase price. It is more a matter of lending regulations than anything else. From an financial standpoint, you should not use the equity in your house for other purposes, such as paying bills or buying a car.
What does unfavorable equity position mean on an auto loan?
own more of car than you owe
What is the difference between a collateral loan and a home equity loan?
OFFHAND I WOULD SAY THERE IS NO DIFFERENCE. WITH A HOME EQUITY LOAN, THE COLLATERAL THAT YOU OFFER TO THE LENDER, IS YOUR HOME. WITH A COLLATERALISED LOAN, YOU PUT UP SOME OTHER ITEM THAT YOU OWN, MAYBE A CAR OR STOCKS OR BONDS IN ORDER TO OBTAIN A LOAN.
Which companies offer a car equity loan?
Wells Fargo offers a car equity loan. Montana Capital does as well. A car "title loan" is offered by most companies and is a more search-friendly term than car equity loan.
What are possible uses for a home equity line of credit or loan?
A home equity loan allows you to borrow money using your homes equity as collateral. Once you have the loan it can be used for anything, paying off credit card debt, school loans, car loans, or home improvement projects are all common uses.
How do you finance buying back a totaled car?
Home equity loan perhaps. No bank is going to finance a totaled car.
Can I use my car's title as collateral for a car equity loan?
When it comes to using collateral for a car equity loan using your car title is an option through certain loan providers it just depends on their qualifications and the value of your car.
Can they repossession your car from a title loan?
Yes. They can! The car is their equity basically!
Is it wise to get a home equity loan to buy a new car?
Answer No. Home equity loans are revolving credit lines. In simple terms, that means you could pay on that for three years and not even touch the principal. I wouldn't do it. Maybe rolling it into a consolidation loan if you have enough equity in your home, but not a HELOC. Answer No. You want to avoid "institutionalizing" your debt. In other words, you don't want to spend 15 years on an equity loan paying for a car that you might only have 5-6 years. It really depends on your personal situation. If you have lots of equity in a house, and the monthly payments aren't too much, and you expect that the house will continue to appreciate etc. then MAYBE. But what if interest rates rise (equity loans are usually directly tied to the fed rate), or the housing bubble bursts - then you are stuck with those payments forever. Upside is that the equity loan is tax deductible, car loan is not. Do the math!
What would be the purpose of home equity loans refinancing?
There are many reasons why a person would use their home equity as a means to get a loan. A few reasons include debt's, holiday, new car, home improvements etc.
Where can I get a car equity loan?
There are many different locations that will provide a car equity loan, the best would be through a bank or credit union of your choice with rates that fit your needs.
What type of cred it is if a bank loans you money to buy a new car?
Normally it is called an Auto Loan if you are using the vehicle as collateral for the loan. But, you can use something else as collateral such as your home, in which case it would be a Home Equity loan.
Is a car loan discharged under chapter 7 bankruptcy?
Whether your car loan is discharged by a bankruptcy or not will depend on your state and the equity in your car. Whether the loan will be discharged or not is called an "exemption".
Can you have a car loan and a home loan?
Absolutely!
