When buying a car, it's important that you have the facts you need about your options to make an informed decision.
How much can I afford?
First of all, you need to have a monthly budget. Add up all of your fixed monthly expenses, such as rent/mortgage, food, regular savings, phone bill, etc. Subtract that from your net income.
Next, subtract your estimated extra expenses, such as entertainment, etc. Take time to prepare a budget that reflects your current needs. Once you have accounted for these items, the result should be an amount of money you have available for an auto loan payment. Use our Auto Loan Calculator to help plan for your auto purchase.
What are my financing options?
Home Equity Loans - With a Guaranty Bank home equity loan, also called a "second mortgage," you can borrow cash against the equity in your home. You receive the entire amount of the loan up front, and the interest rate is fixed until the loan matures. You repay the loan back in fixed payments every month, which includes principal and interest. You can also pay off the loan at any time with no pre-payment penalties.
Home Equity Lines of Credit - Similar to a home equity loan, you also borrow cash against the equity in your home. However, there are a couple of differences to the loan. With a line of credit, you may access your home equity through future withdrawals up to a set amount. Instead of receiving the entire amount up-front, you receive a special checkbook to access your account as many times as you like during the access period up to your credit limit -- similar to a credit card.
In addition, the interest rate on a home equity line of credit is variable instead of fixed. This means the interest rate can change, either go up or down, depending on how the national interest rates move. You only pay interest once you use the money.
Ready to move on your new car? Contact us to review your options today.
*Annual Percentage Rate
Rate subject to change without notice.
Rate may be higher due to adverse credit and loan term
Please complete the application and bring it to one of our 6 locations.
You may also mail the application to:
Guaranty Bank & Trust
PO Box 1807
Cedar Rapids, IA 52406