I am thinking of paying off my Ultra with my credit card then paying off credit card with Home Equity Line. My reasons are I have a loan with Harley Credit for 4.99 %. I can get airline miles from using my Capital One card and my Home Equity line is at 5.25% plus I can deduct all of the interest I pay from the Home Equity line at the end of the year. What do you guys think?

 

Paid my car off a similar way but only owed $4,000 on it.Had a lowrate of3.9% from VW but got0.00% for 12 months from credit card and NO balance transfer fee..... I got double miles as well during the promotioin period I did everything. Hell, yeah....Way to gofor you and deducting the interest is a good thing at tax time!! DO IT

 

HELOC @ 5.25%?
1st makes sure is not adjustable and if its not, I would do it.

 

I would call this a no brainer!!!

What are you waiting for?

 

4.99 is not a bad rate.I would just try to pay it off sooner. I would not borrow against my house to payoff a toy.A home equity loan would increase the loan payments another 5,10,15 years,right?
Also watch out for those balance transfer offers from cc companies.Make sure you know the terms of the loan.Sometimes the monthly payments can be higher than what you have now.
Just my 2 cents.

 

Sounds reasonable IF you swear to yourself that you're not going to charge up the credit card again after you use the HELOC to pay it off. An hour or two of Dave Ramsey every day should keep you straight.

 

Most home equity lines are variable rate. If you're going to pay it off quickly, then maybe.

 

Only if the equity line is fixed rate and in place before you start your process. If you use the credit card and don't have the equity line in place, what happens if you wind up without the equity line? - you are stuck with major high interest.
Otherwise - seems like a good idea.

 

Home equity shouldn't be used for this type of thing. What happens if you would really need some cash in a real emergency. Playing a shell game with credit can become serious if you don't use it correctly. Even if you got 40,000 airline miles, that isn't even 2 roundtrip tickets.

The only way I would do this is if you have a lot of equity in your home (so you could still tap some emergency cash if needed) AND pay it off within the same time frames as the original loan (do not extend any longer or you pay more over the long run).

My preferrence would be leave it alone and just payoff the original loan ASAP.

Gart

(Edit: Don't buy any more "goodies" for the bike until it's paid for.)

 

I have several loans including a home equity. I'm about to payoff my wife's car this month and then transfer those monthly payment amounts to my truck loan until it is paid off. I've calculated that I can payoff my truck almost a year early by doing that. Why am I not using the money to pay off my home equity line? Because the interest is deductible and the interest on the other loans is not. I think it is a no-brainer unless your mortgage plus your home equity line totals to over 80% of the value of your home. You don't want to be stuck anywhere close to "upside down" in a home for years on end because you never know when things may happen in life to change your financial situation and you can't even payoff your loans attached to your house by selling the house. It's always smart to payoff things with highest, non-deductible interest rates first. For every $3 you pay in deductible interest, you may get back $1 against your tax liability so, even if the home equity interest rate is slightly higher, you still come out ahead. Plus, there would no longer be a lien against the title of your bike.

Be careful to read the fine print when you go to transfer your loan balance to your credit card. Capital One, I've found to be fairly reputable but find out what you'll pay in cash advance or balance transfer fees. Some cards charge a flat percentage of the transfer amount as a fee. Actually most of them do but some have a maximum amount they will charge no matter how much you transfer and some do not. They all usually have a mininum amount but you want to be careful if there is no maximum. On a large transfer or cash advance, that could add up to a lot of extra money and may not be worth the miles you will get.