Boat Loan Terms
Want to continue to pay a home equity loan with 20k in a CD?
I came to win a $ 48,000 drop in a few months ago, I paid all my credit cards and bought a small Boat and raised $ 20,000, which I put in a CD earning 4%. I have $ 25,000 in credit lines with two credit cards and no balance. I still have a $ 18,000 loan I pay at home, this is my only debt, the original deadline was 7% in 15. My CD matures in September and will be happy if I get 3% on new terms. My question is that I like the safety net of the $ 20k in liquid assets can still I only get about $ 74.00 a month in interest can still pay $ 189.00 a month on my home loan. You could take the remaining $ 20K and pay Home Equity and lose the sense of security that you have $ 20k to support it? Would you trust to pay off credit cards with a combined line of $ 25k in his safety net? Finally, if I continue to 20k on several CDs and continue to pay Home equity loan in around 14 years, the 20k will be my … totally. What are their views?
I looked at interest rates / tax issues. One more question: is there some kind of prepayment penalty or closing cost / Fines to end the Home Equity Loan? I'm assuming that the interest on your home equity is deductible for tax purposes? If so, depending on the support tax you are in. If ur paying 7% on the HE loan, and assuming ur in the 30-35% level, with the tax savings ur net loan payment in HE is about 4.5 to 5%. But ur only receive 4% on the CD. So ur paying a bit more on ur winning CD, but its very close to being a close race. So the answer may be giving you more peace of mind.
No Bank Qualifying – Paradise Point QLD
