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  #1  
Old 09-15-2004, 12:54 PM
Dan R.
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Default Combining boat and house payment into one?

I bought a $150,000 house a year and a half ago at a 6% interest rate. I have a boat that I owe $20,000 on. i am making two payments per month, house for 1100(escrow) and boat for $300. Is it in my interest to somehow combine my debt into my mortgage and make a single payment that is slightly less than the $1400 total I am paying now?

Not real familiar with home equity loans and the like so I am looking for some advice on this. I think a lot of people may benefit from the response.
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  #2  
Old 09-15-2004, 01:25 PM
Skis Skis is offline
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Default RE: Combining boat and house payment into one?

Two benefits: Interest paid on your mortgage is deductable. Second, interest rate may be better. You may want to look at refinancing your house again anyway. Rates are cheaper now than 18 months ago

Negatives: House secures your boat loan. Something goes wrong, you can keep your boat, but lose your house. Second, you will be paying quite a while on that $20,000 if you combine it into your 15-30 year house loan.

If you have good equity in your house, an equity loan for your boat loan would be my suggestion.
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Old 09-15-2004, 01:32 PM
payments
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Default RE: Combining boat and house payment into one?

if you combine your boat with your house payment, and at sometime decide to sell your boat, sometimes it is a hassle to get the lein holder to release the title to your boat. been there once, and can say i will always keep then seprate.
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Old 09-15-2004, 02:12 PM
Retail Finances
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Default RE: Combining boat and house payment into one?

Not a good idea. You will have more fees than you'd ever save. Plus, you do not want to own your boat for the entire duration of the house mortgage contract.
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Old 09-15-2004, 02:43 PM
Eyehound
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Default RE: Combining boat and house payment into one?

It would be in your best interest to pay
off the boat as quickly as possible.
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Old 09-15-2004, 03:50 PM
Burr ND
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Default RE: Combining boat and house payment into one?

I don't think it would be worth while to refinance a 6% loan. Closing costs will probably be @ $2000. You can go through the present value calculations, but on the surface I would say stay with your current mortgage.

Good point was made not to put them in the same loan package. Makes it real hard to sell your boat without refinancing your house - again.

Tax dedtability is a motivation. Now that you have a home, you should try to fit all of your debt into the tax deductable category, and live within that limitation.

If you have some equity in your home - look into a second mortage, which is also tax deductable up to a limit. That will free up your boat title completely (do you also have any vehicle loans to address at the same time?). If possible, look into a home equity line of credit. And if it seems there just is not enough equity anywhere - start paying things off.
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Old 09-15-2004, 05:07 PM
easyrider
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Default RE: Combining boat and house payment into one?

that interest you deduct may still have alternative tax issues especially if certain itemized deductions are high. The interest is deductibe to a said amount, but watch the AltMin tax computation, it could snag you. I would never recommend using your home for the boat. If you lose the boat, so be it. Fail to make an equity line of credit, maybe your house goes. Do the math on refinance, but do you really want to take on more mortgage debt?
You should have thought this through before you bought the boat. Last thing, if you get a equity line, the rate likely will be variable and that may not be a good thing for the future. I would not refinance with a 6 % good debt mortgage.
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