Aargh. That is sad to think about.

 

take the home equity loan, invest in a spec home, pull that money out in 6 months and use that to build your car!

 

yea but will it get so much money in such a short period of time.

 

I'd consider taking out enough money to do a built engine and up the boost, but not shoot for 1000whp or anything like that. Depending on your house you can make tons of money in such a short time. My small little house made $40k in 8 months and it's not a very expensive house at all

many people are still perfectly capable of working at 60 years old. Where I work, there's 60 year olds who can hike the entire grand canyon in a day in the summer heat - that's in better shape than me and I'm 26.

besides studies have shown that when you retire, your body starts shutting down faster than if you kept working and had something to do everyday other than sitting around watching opera

 

Ok how can this be done and what amount is needed

 

Bro cars are cars, they come and go. Your house is you future and a good investment. Who knows how you'll feel about your car in five years or less.

 

the most ill get is 15k no more then that this is nothing compare to what my house has gone up in value im talking about 200k easily looking at other houses that have sold recently with the same features as mines thats why i was thinking about it. But now what im going to try to do is what sentry65 told me if it really works then ill do that.

 

It's not a question of what a 60 yr old is capable of doing or not-- it's about being strapped with a mortgage and not being able to retire. If you ask most people, they'd rather not have the responsibility of a large mortgage when they retire. They'd rather have their pension or retirement income to enjoy their remaining years doing what they want-- rather than going to work every day.

 

I know, I wouldn't want the mortgage hanging over my head either at an old age.

but if he's looking at 15k or something, really that's nothing compared to the hundreds of thousands the house is going to take to pay it all off. That probably adds about 2 additional years to paying off the house. But at the same time, if you pay something like $100 extra a month for a year or two, that'll pretty much make up for those 2 extra years because of how the complex interest works and that extra $100 being put towards the principle.

The other thing to keep in mind is even though everyone usually moves a few times in their life, when you do have the house fully paid off, if you are planning on staying in that house, the value of it will no longer help you until you sell it. Every time you refinance it's like cashing in your chips on the interest the house has made. It gives you that money now and takes away from what you'd get later. If you never refinance and just pay off the house, then you're saving up all the grown appreciation on the house and if you were to NEVER sell it, then you'd never get to "cash in your chips". Refinancing is the same as rebuying your house only you get handed the profit you're making on it.

a home equity loan is better than a credit card - interest is 7.5% right now which is usually better than 10-12% that credit cards offer you. If you do that, that's not a bad solution. Refinancing your house is the better way but does cost you some money though - usually $300 for an appraisal unless you're lucky and don't have to, then the refinancing fees which is usually a couple thousand or whatever.

You could be in 80k worth of debt, have credit cards maxed out - have a line of credit maxed out, etc. And if your house makes 80k appreciation in 3-4 years, that basically covers it - the appreciation will cancel out your debt so YOU don't actually have to pay off your debt - the house's appreciation will do it for you. But keep in mind that obviously it will take longer to pay off the house.

Paying off the house faster is great and all, but it's an appreciating item that will by itself increase the % that you own by it on it's own. It'll never get paid off unless you pay, but paying off the house should be the least of anyone's worries if they're young because it gets easier and easier to pay it off as time goes on because your % of ownership increases, and inflation happens, yet the $ amount you have to pay off on priciple stays the same

So even if you did want to take out $50k to dump into your car, that's doable - it'll take probably 2-3 years for your house's appreciation to make up for it, but personally I wouldn't try to do 1000whp since it's such a pipe dream and probably a huge waste of money

buying a house is the greatest thing you can ever buy. I seriously feel bad for friends who are stuck with having to pay rent for appartments. My house's appreciation alone is equal to or greater than their total yearly salary

I'd still say if you just want to take 15k out, that's probably not going to really hurt much - you should try to make up for it though - spend less money on other things in the next couple years and try to put the money back into the house if you can. It's a MUCH better situation than someone who doesn't own a house racking up their credit card - now THAT can be dangerous. A house can at least help bail you out of debt

 

I could not have said it better myself.

 

Thanks alot sentry65 if i have any other questions ill PM you for now im just going to go with 15 to get my ultimate long block with fuel return and hks f-con.

 

I'd say you're crazy to even consider.

 

my mom is a home loan officer and has refinanced my house a couple times now and that's how I understand it.

just make sure you have a steady income and don't get fired or anything. It's best to have a home equity line of credit available to buy stuff with and credit cards for emergencies - or play the 0% interest on credit card game. When the 0% is gone, pay it off in full from the home equity line of credit to minimize the interest rates.

keep in mind that houses are getting more expensive. If you ever wanted to move someday - when you sell your house, you'll no longer have that appreciation money if you already spent it. So when you go to buy a new bigger house, you'll own a much much smaller % on it than you would in your current house, which means higher monthly payments and higher interest rate and possibly paying mortgage insurance - which is a totally worthless thing to pay each month that the lender company hammers at you if you own less than 20% of your home.

The good news though is that bigger homes appreciate even more so than smaller ones - unless they're too big like mansions where there's fewer people in the market to buy them where you'll have a harder time selling it so you'll end up dropping the sale price down below market value

In terms of financial investment and making money - it's never a good idea to take money out of something that gains money and sink it into something that loses money. But there's worse ways to go about it than refinancing your house and if you're young, you only live once. Once you're old and actually can truely afford to spend money on expensive toys because the house is paid off, well you're old and going to want to play bingo and all that fun crap. So I say enjoy your money, but maintain a balance and do it the smartest way you can and don't get too far in over your head - IMO

 

Im going to look into it but i will only take out 15k with my salary i can pay 15 maybe in 2 years and maybe less if i just send more then what it is. Im not going to get in over my head at all. And again thanks alot you have been very helpful. Ill let you know what i end up doing at the end.

 

No. The smart advice is that you should be saving 3-6 months of salary in "cash" assets in case you do get fired, downsized or _injured_. Unless you know some magic way of avoiding illness, back injuries or auto accidents.

 

Ditto

If you want a 1000hp 350, at that cost a closed deck motor like the rb26dett would be a better choice. 90% of the time, most people would say its not worth it in the long run and it would cost more, but where you are going, it's definitely a cheaper solution