home equity loan or refianance to buy airplane?

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.

"John Doe" wrote in message
news:OQ0We.23172$8q.16954@lakeread01...
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.

If you're looking at it from a purely financial standpoint, remember that
you can write off the interest paid on a home loan, whereas you can't on an
airplane loan. Depending on the term and rate, borrowing against the house
could significantly reduce the effective interest rate.

KB

this is my opinion, and nothing more...

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.

What Dave said.

Tony
--

Tony Roberts
PP-ASEL
VFR OTT
Night
Cessna 172H C-GICE

this is my opinion, and nothing more...

NEVER, EVER jeopardize your homestead to finance a hobby.

Dave

On Thu, 15 Sep 2005 02:44:15 GMT, tony roberts
wrote:

What Dave said.

Tony


this is my opinion, and nothing more...

NEVER, EVER jeopardize your homestead to finance a hobby.

Dave


Yep.

z

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.

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.

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

On Wed, 14 Sep 2005 17:54:44 -0400, Kyle Boatright wrote:


"John Doe" wrote in message
news:OQ0We.23172$8q.16954@lakeread01...
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.

If you're looking at it from a purely financial standpoint, remember
that you can write off the interest paid on a home loan, whereas you
can't on an airplane loan. Depending on the term and rate, borrowing
against the house could significantly reduce the effective interest
rate.

KB

Doesn't sound like .75% is "significant".

Just to hammer this home, most states plus federal laws, make it very hard
to lose your house...unless you put it up for collateral on a loan. Once
you've done that, you have more or less signed away any protection you
previously had.

The deal that Frank worked is the only situation I would ever dream of
doing a home equity loan. And, don't forget, should the worst happen, you
not only need enough to pay off your loan, but enough to live off of until
things get better. Don't confuse that money with "nest-egg" money.

Greg