home equity loan or refianance to buy airplane?

Well put! I won't pull money out of my house either.
I don't have much on credit, and I pay credit cards in full when I use them,
but if I did, I still wouldn't borrow off my house to pay for it.
If you get in trouble with car payments because something happens to your
income, they repo the car. If you refinance your house to pay off credit
cards and auto loans and lose your income, they take your house.
An airplane is something I will have to finance, but I"ll keep it separate.
The rate you're getting quoted sounds good.

Alex

NEVER, EVER jeopardize your homestead to finance a hobby.

Dave

John Doe wrote:
Read in one of the monthly magazine rags about getting a home equity loan
or refinancing your house and getting cash out to pay for an airplane.

Has anyone actually done this and if so, is this a better option than
just getting a straight aircraft loan.

I'm being quoted 6.75% right now for a 20 year fixed for the amount I
want to borrow for a plane. Refianance companies have said I could get
under 6% if I roll it into my home loan.

Any advice would be great.

Thanks.

Dave S wrote:
this is my opinion, and nothing more...

NEVER, EVER jeopardize your homestead to finance a hobby.

Well, I MOSTLY agree.

This was a dozen years ago, but I had the cash on hand to buy my plane.
Instead doing it that way though, I thought it made better sense to take
out a home equity loan to buy the plane. I stuck the cash into some
relatively safe (hence low-yield) investment. Made a bit of money on
investment and at the same time got to deduct the loan interest off the
taxes. If something had happened to my income, I would have cashed out
the investment and paided off the loan.

I never would have done it if I didn't have a way to pay off the loan
instantly. Going into pure debt for your hobby is a really bad idea,
IMHO.

--
Frank Stutzman
Bonanza N494B "Hula Girl"
Hood River, OR

Frank Stutzman wrote:
Dave S wrote:

this is my opinion, and nothing more...


NEVER, EVER jeopardize your homestead to finance a hobby.


I never would have done it if I didn't have a way to pay off the loan
instantly. Going into pure debt for your hobby is a really bad idea,
IMHO.


So it was never really in jeopardy!

Dave

You get to deduct the interest you pay with the Home Equity Loan.


Trip

In article OQ0We.23172$8q.16954@lakeread01, says...

Read in one of the monthly magazine rags about getting a home equity loan or
refinancing your house and getting cash out to pay for an airplane.

Has anyone actually done this and if so, is this a better option than just
getting a straight aircraft loan.

I'm being quoted 6.75% right now for a 20 year fixed for the amount I want
to borrow for a plane. Refianance companies have said I could get under 6%
if I roll it into my home loan.

Any advice would be great.

Thanks.