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Originally Posted by TriKKy
Pops, not getting down on you or saying anything about your spending habits. The difference you need to pay attention to is the fact that even at a higher interest rate on a normal auto loan, let's say 10%, you are still likely going to pay less in interest over the life of the auto loan (unless it's really high) than you are going to pay in interest on the "auto-loan" part of your mortgage. .....
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Right, but that's partly assuming that I'll be carrying this mortgage to full term which I'm not. In 5 years, my house has appreciated $110k (just got the appraisal in this morning) and the neighborhood is only 60% developed. My plan here is to build a smaller house and sell this one after the kids are grown and moved out. By then, the neighborhood should be very close to completion and the appreciation should be enough to be able to build smaller on some small acerage further out with financing $50k or so at the most. With the current numbers, I could do it now and reduce the mortgage amount at least 50% but I want the kids to finish school first. There's no question that you're right about spending more for the auto intrest in the long run, but I just wanted to consolidate our current monthly spendings since it's obvious to me now that wifey wants to continue to stay at home. With appreciation combined with equity, my plan is to have about $450k-$500k to build a new place with when the kids are grown. The nice thing about living here is that alot of new homes run about $110-$120/sqft so a 2600sqft home costs less than $300k.
Y'all's replies definitely have me rethinking things but I'm still thinking this is what I'm going to do.