When making a major purchase, using a home equity loan or line of credit is an alternative to financing offers often provided by a seller or manufacturer. In such cases, buyers often have the option of taking the seller-provided financing offer or a rebate on their purchase. Taking the rebate and using the equity in your home may provide a better alternative to the seller financing.
Using Home Equity for a Major Purchase
Use Home Equity for a Major Purchase
Loan Amount |
Monthly Payment |
|---|---|
| $ 24,500 | $ 461.22 |
Loan Amount |
Monthly Payment |
|---|---|
| $ 25,000 | $ 448.10 |
| Home Equity Loan | Seller Financing | |
|---|---|---|
| Total Interest | $ 3,173 | $ 1,886 |
| Total Principal | $ 24,500 | $ 25,000 |
| Total Cost of Loan | $ 27,673 | $ 26,886 |