I know this has been asked before, but every situation is slightly different. , Secured a $200k HELOC at 5.45% fo the next 9 months, then prime. 10 year draw period, during which I only pay interest.
I had originally planned to finance $150k of a $350k renovation and pay off furiously during the intro rate period. Once I got the principle down to half of what I originally had borrowed, I had planned to begin raising cash for a vehicle purchase.
I expected all of the above to take about 18 months.
Fast forward to today and it looks like the car’s close to its last leg.
So my question- considering I’m only required to pay principle, do I put about $25k down on a $65k vehicle, and use the HELOC to pay cash for the rest? This would bring my total borrowed fo car and house to about $195, but again, 5.45% interest only for the next nine months, then it resets to prime flat.
Secure job. $275k household income. No other debt. Have brokerage I could access if things hit the fan.