I’m coming to the end of my lease and decided I’m going to buy out my car. Normally, I’d do a normal car loan and be done with it. The buyout is about $55K with taxes.
However, my current mortgage lender sent an email that I can lower my rate about 1/2 a point to 2.375% on a 15 year. I’m 4 years in on my 15 year currently, and I dont plan to move anytime soon. I don’t like the idea of starting over on the mortgage but I could cash out to pay for the car and still have about 40-45% equity in my house at current market rates and my payment would be less than it is today.
Oh, before the Dave Ramsey’s and Suze Ormans chime in, I could pay cash for it but I like to have at least a years worth of expenses in savings.
Is this a bad idea?