Home Equity Loan - Case Studies
Should you use the equity
in your home to buy a car?
wants a new car but she has no savings. Should she use a home equity
loan to buy a new car?
Analysis: Christine should not use a home equity loan to
buy a new car. Cars and luxury items are depreciating investments.
It is not the smart to reduce the equity you have in your home to
buy a car, a boat or another luxury item. Save until you can afford
More Related Information On...
reducing equity/ownership - see Advantages
& disadvantages of a home equity loan
good and bad uses of a home equity loan - see Uses
of a home equity loan
other ways to borrow money - see Other
ways to borrow money
More Case Studies:
- Using home
equity for debt consolidation: Tony wants to use the
equity he has in his home for debt consolidation but he is unclear
about the advantages and disadvantages of doing this. If borrowing
from his equity is suitable for his situation, what type of loan
should he get?
- Using a
home equity loan for home improvements: Charlene and
Russell are considering borrowing from their home equity to make
home improvements. They have a rough estimate of costs and they
plan on doing the work over the next year. What type of loan is
right for them?
refinancing? John wants to borrow from the equity
he has in his home but he is not sure if he should get a home
equity loan or cash-out refinance?
of accepting a loan offer. Milton is thinking of accepting
a home equity loan loan offer. How will this affect future selling,
future home equity borrowing and what will be the tax implications?