Question by Alecia C: Is it wise to refinance your home mortgage to consolidate auto loans?
My gut answer to this is no. I tend to think that a refi on my home mortgage for 30 years to consolidate a 4 -5 year auto loan only extends my payments and in another 5 years or so I will have to get another auto. Would a 2nd mtg or line of credit for the auto loan be wiser?
Answer by KL
It depends on the term and rate. The benefit is you turn the debt into a tax right-off, but unless your lowering the rate, there’s no other benefit. Auto loans usually have pretty short terms, so it’s better to stay with them.
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