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Can I use a home equity loan to buy a car?

If you're thinking about buying a car, consider financing it with a home equity loan. Interest rates may be lower and the interest may be tax deductible1. If you are considering this option, remember that there will be a lien on your home.

To find out which type of loan is best for you, use this simple calculator.

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Home Equity Loan1

 
 
 
 
 

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800-445-5833

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800-445-5833

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  1. Home Equity Loan – As of March 11, 2016 the fixed Annual Percentage Rate (APR) ranges from 5.99% to 8.49% for 30-year second position home equity installment loan with loan-to-value (LTV) of 80% or less. Higher rates apply for higher LTV, certain property types, low credit score or other loan amount. The APR reflects a 0.50% interest rate reduction for having automatic payments from a U.S. Bank consumer checking or saving account and a Consumer U.S. Bank Checking Package. A Consumer U.S. Bank Package and automatic payments are required to receive the lowest rate, but not required for loan approval.  The Consumer Pricing Information brochure lists terms and conditions that apply to Consumer U.S. Bank Checking Packages and can be obtained by calling 800.872.2657.  Loan payment example: on a $40,000 loan for 360 months at 6.49% interest rate, monthly payments would be $252.56. Payment example does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included and an initial customer deposit may be required if an escrow account for these items is established. APR is 6.49%. No closing cost option: a) is available for customers with a debt to income ratio of 43% or less; b) customer pays no closing costs, except escrow related funding costs; c) an early closure fee of 1% of the original loan amount, maximum $500, will apply if the loan is paid off and closed within the first three years; d) customers can choose to remove the early closure fee by paying an origination fee of 1% of the loan amount, maximum $500. Customers with a debt to income ratio above 43% do not have an early closure fee.

     

    Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Property insurance is required.

     

    U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.

     

    Mortgage and Home equity products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.

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