When you apply for a loan car, have a loan with an existing mortgage, it could affect your ability to obtain the loan . Lenders look at your existing debts and how you handle these debts before extend you new credit . Also, you can not ask for a loan car unless you have enough income to pay both the new loan and payments of your existing debt.

Credit score
Lenders make periodic reports to the agencies about credit management credit. High balances and payments made ​​more than 30 days late will have a negative impact on your credit score. As the houses listed better than cars, you can get a loan with a home equity rating below the required score to get a loan car. Therefore, even if you had enough credit for a loan mortgage, could not qualify for a loan car, and late payments on your loan mortgage could jeopardize your chances even get a loan car.

home equity loan

Debt-to-Income Ratio
Just certain amount of money to spend each month, and lenders are examining your debt to income ratio (DTI, for its acronym in English) to ensure that a new loan will not make you have more debt than you can afford. Your DTI reflects your debt payments as a percentage of your total monthly income. Usually lenders only allow you to get new credit if your DTI does not exceed 35 or 45%. Great pay your loan mortgage could not leave enough cash to pay a payment of loan of the car.


Existing Loans
Once you’ve established your loan and your home equity loan car, how you manage a loan has no direct impact on the other. Your mortgage lender can not increase the interest rate or get penalties if you fail to pay your loan auto or vice versa. While you keep the terms of your agreement with the lender, you will not have problems with car recovery or foreclosure in connection with another loan .

Variable rate
Home equity loans have fixed interest rates, but many banks offer home equity lines of credit with variable interest rates and require only the payment of interest. You can get a loan car outside your low rate credit and have no problem paying both debts. However, most lines of credit have very high interest ceilings, which means your payment could double or triple when interest rates rise. If that happens, your credit line could soon have a big impact on your loan car if you can not pay both debts and must choose between protecting your home or car.