Maryland consumer attorney Sonya Smith-Valentine warns not to use a home equity loan to purchase a car. Her reasoning makes sense. When you use a home equity loan, you pay for the for many years longer than you would with a regular car loan, multiplying the interest you end up paying.

The same is true for rolling a new car into your refinance. If you refinance your house and take out enough money to purchase a car, for example, you pay for it over the life of the home loan, which is probably 30 years. Even though your home loan interest rate is lower than a car loan interest rate, you will pay more for the car by rolling it into your home loan.

Get a car loan instead. Or, if you have already done this, Pay more than the minimum monthly payments so that your principal is restored more quickly. — SAM GLOVER

(Photo: Ben Popken)

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.