Home Equity vs. Auto loan Calculator

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The purpose of the Home Equity vs. Auto Loan calculator is to help users compare the terms offered by home equity loans and auto loans. In order to use this calculator you will need to enter the pre-tax purchase price of the vehicle in question, the auto loan interest rate, the fees associated with the auto loan, your trade allowance, the terms in months, your cash down amount, your state's sales tax rate, how much you still owe on your trade in, the interest rate for a home equity loan, your federal income tax rate, the closing costs associated with your home equity loan, and your state income tax rate. This calculator will process all of this information and produce a chart that compares the costs associated with financing your vehicle using a home equity loan and the costs associated with financing your vehicle using an auto loan.

Home Equity vs. Auto loan Calculator Overview

When most people want to finance a vehicle they think that their only option is to use an auto loan. However, if they own their home then they may be able to get better terms by taking out a home equity loan instead. There are many advantages of using a home equity loan to finance the purchase of a car or truck.

First of all the interest will most likely be tax deductible, secondly the interest rate will probably be lower, and finally the loan can be spread out over a longer period of time. If you are interested in determining if you should finance your vehicle purchase with a home equity loan or an auto loan then you can use our Home Equity vs. Auto Loan calculator.