Speculating on the usage of your home to get an auto loan? This method would prove beneficial as the interest rates are lower for a home equity loan and there is a prospect of getting an exemption on the tax. Apart from this aspect, a home equity loan also gives you money to deal with those additional requirements. Read-on the following tips to find out simple and trouble-free ways and get a hold on the auto loan processing for your new car.
· Go in for a pre-approved auto mortgage:
A pre-approved auto mortgage is similar to a pre-approved housing loan. It gives confidence to the seller about your interests, thus making it easier to provide you with the best financial options and services available. You can also lower your expenses with the accurate knowledge of prices in the market as an unsatisfactory deal with higher interest rates would be a bad deal. Thus going in for a pre-approved auto loan will give you effective and best interest rates.
· Going in for an extra housing loan:
An extra housing loan protects your interests by clubbing the advantages of your current ability. An extra house loan facilitates you to convert a particular equity into cash and helps you in providing you funds for your auto loan. This loan also provides you with an extra cover and an excellent way to obtain funds when things are going good for you. This process is better than having to pay interest on the diminishing resource like a car.
· Feign about buying a house:
Pretending to buy a house can save the mortgage to a great extent. For this you need to pay at least 20% of the purchase price in cash. This down payment will protect you against the shocking depreciation rate of your new car and provide you with a protection for the next two years.
· Go in for a house mortgage scheme:
Going in for a home mortgage would help with paying the down payment of 20% and keeping the term of repayment shorter. Shorter loan repayment terms offer lower interest rates with higher monthly payments. Thus, mortgaging your home will help in mobilizing that initial payment and the preluding payment without any hiccups. This method also puts buyers on the good credit rating list.
· Pay taxes with the additional cash in hand:
Pay off all the miscellaneous expenditure like documentation fees, sales tax, extended warranties, registration fees and additional trimmings which come with buying a car. This ensures cut down the loan and interest amount considerably.
Thus using your home to buy a car is a safer option when compared to the extremely difficult and challenging prospect of getting an auto loan passed. This way you could stay away from the huge repayment plans offered in the auto industry. Checking out the mortgage rates, depreciation rates and other methods would not only help you plan, stay calculated and prepared but also make use of some exceptional approaches which would help you can work your way out of your auto debt.
About the author: Kelly is a blogger by profession. She loves writing on technology and luxury. Beside this she is fond of gadgets. Recently an article on best mobile phone attracted her attention. These days she is busy in writing an article on astro gaming.