refinancing

[50-yd-line]

I want a new car and I also want to rerfinance my home (pay bills, renovate and payoff car). Should I refinance 1st and use equity money to purchase a car or obtain a car and then payoff car loan?

[EverClean]

A car loan will usually be over two to seven years where a standard mortgage is 25 years plus. If you extend the term over which you are paying for something you will invariably end up paying more for it.

It would be easier to remortgage for the amount you need in the first place and not to go through the process twice - especially if there are penalties or charges involved with paying off the car finance.

[Mrs_Pegasus]

I agree with Everclean.

You will also find that the rate of interest for an equity loan will be cheaper than the bank rates.

If you are planning on seeing the full term of the mortgage in the same property then it will obviously work out expensive, but if you are planning to move in the next 5 then the loan will automatically be paid off when you sell and you will have had yourself a cheap loan.