: The most critical risk is foreclosure . If you fail to make payments, you could lose your home, whereas an auto loan failure only leads to car repossession.
: Once the draw period ends, you enter a repayment phase (often 10–20 years) where you pay back both principal and interest. heloc to buy a car
Experts generally advise against using home equity for a car unless you have a rock-solid repayment plan and can secure a rate significantly lower than an auto loan. For most buyers, a traditional auto loan remains the safer choice because it does not tie your primary residence to a depreciating asset. : The most critical risk is foreclosure
: Most HELOCs have variable interest rates. If market rates rise, your monthly payments will increase. Experts generally advise against using home equity for
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