home equity loan or refianance to buy airplane?

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