agi_jw

Ok, questions.
I just got my car is september. I traded my other car but still i owed money on it ... so i went to get scion with debt from old car ($7K or something like this) ... well, i have balance of $20K on my xb now.
I did get the GAP insurance thinking if something happends they will pay off the whole thing.

Well, here is what i want to do.
I have house and few other bills and i was thinking of refinancing my house and include my car loan in the refi. BUT question is ... if my car get totaled the GAP will not pay for the differnace since it will be included in my home loan, correct?
So if i have accident tomorrow i will only get whatever my car is worth ... and not the whole $20K?

Can someone help me with this????
Benefit of refinancing will be lower interest rate and tax write-off.

please advice
Agnieszka

chucksu

That is a good question. Maybe you could refinance them seperate, or maybe the company you refinace with has a GAP styled coverage?

bBob

When you refi your home and pay off your car, you will receive the title from your state's Department of Transportation. Your house essentially becomes the collateral for that car loan, since your folding it all into your mortgage. You can eliminate the GAP insurance since it won't be needed in the event of an accident. Yeah, about $7M of your mortgage will be the car, but... if you wreck it anyway, are you going to reduce your mortgage by the amount of money you receive from the insurance company, or just take those proceeds and go buy another car?

turbochargedcobra2001

20k is including the debt of your previous loan therefore even with gap I dont think you would be covered for the whole 20k just the replacement value I believe.....

IBJanky

NEVER use your house as collateral

That's a VERY BAD idea

UnFocused

How the hell did you take a 7K hit on your trade......

Did you ever think to sell private party?

on to the house- Some people will say do, some say don't......If you can get a refi loan thats 1 point lower, I would.......