On Fri, 16 Sep 2005 20:21:08 -0400, Kyle Boatright wrote:

[snip]

And .75% probably isn't significant, but the real difference is probably
2.5% after taxes are considered. Over 20 years, that is real money. I've
never purchased a toy (or car, or anything else) on home equity, but from a
purely financial sense, the home equity loan makes sense. Beyond that, if
you get into a cash crunch, you can sell the airplane to cut your outflow,
and hopefully bring in some cash (unless you're upside down on the airplane
loan). I'm sure its been done, but you'd have to be pretty dumb to let your
home equity loan that financed your airplane cost you the house...

KB

Really depends on the market. If you get in a pinch, to unload your
plane, you may have to sale it at a loss to simply stop the bleeding...and
that assumes you can find a buyer in the time frame needed. Obviously,
we're not talking absolutes here but the reality is, home loans do come
with a risk which is often ignored. There is certainly nothing wrong with
highlighting the fact that a home equity loan is waving a lot of
protection you have under the law; which is why it's not legal in all
states. You're also assuming that everyone manages their money as well as
you do. I can assure you not everyone has a mind for money.

Greg