Fed Cuts Rates: Will RV Rates Follow?
The Fed cut rates 1/2 percent this morning in an effort to keep the stock market bubble growing. I'm negotiating a new RV loan to close in 10 days and the dealer quoted me 5.49% last week. I haven't...
Forum Discussion
pnichols wrote:babock wrote:
Financing a depreciating asset with your home is just a bad idea.
If one must finance a depreciating asset - and if one would normally eventually pay off the loan that they used to buy the depreciating asset, anyway - then financing the loan at the lowest obtainable interest rate is always a good idea.
There is one possible exception to the above almost best practice: If a situation should arise such that one could no longer continue paying off ANY loan, then I guess it's better to have the depreciating assest repossessed along with one's credit ruined - than to have one's home repossessed along with one's credit ruined. ;)
From the OP's post it sounds like he's paying 1/2 cash and financing the rest. On default he'd be able to unload the RV by either selling or repossession at which time he's owe less than its value.
I get your point but the OP's situation seems safe to me. I agree that if I owed a fair amount on my house but had just enough equity to cover an RV loan then that would be way too risky.
