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When you're considering the purchase of a new or used car, you're probably looking into traditional auto loans. Another option to consider is using your home equity to buy a car. Since home equity loans and lines of credit generally have lower interest rates and give you the opportunity of possible tax deductions, they may be more affordable choices and allow you to consolidate your debt. Be sure to consult your tax advisor regarding deductibility of interest.
Using your home equity loan to buy a car affords you several benefits you would not receive with an auto loan. You could also use your home equity for outstanding car payments in order to consolidate some of your debt. Consider the following benefits when making your decision.
While the lower interest rates and tax benefits of buying your car with a home loan are tempting, there are also some risks and expenses to take into account.
If you have good credit and plan to pay off the loan in just a few years, then using a home equity loan to buy a car can be a good idea. While there are both risks and benefits to a home equity car loan, it's important to discuss your particular situation with a financial advisor. To learn more about home equity loans, interest and repayment options, talk to a Citizens Bank home loan originator at 1-888-333-1206 today. We can help you decide which product is right for you.
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