Need advice on a big purchase - Please

[tussking]

I have the cash in the bank but...

I can have NFCU freeze $8500 of my savings and they will give me a loan for 36 @ 2.29%.

As I pay the $8500 back they release my funds.

Is it worth paying 2.29% for 24-36 months?

Thanks in advance.

[Revelate]

If it were me I’d take that deal in a heartbeat.

You can get basically no-risk returns easily at 3% so anything beneath that APR is free money when talking arbitrage.

Even in riskier equities or whatever over time 6% isn’t unreasonable, not sure where the market is really going now but my own investments have expanded an absurd amount YTD.

S&P 500 is up like 18% and my own investment portfolio is lucky to be doing even better than that.

[CreditInspired]

Sweeeeeeet. That’s a nice deal. No question I would take it! And, if you paid it off earlier than 36 months, you would be saving on total interest paid!

This is definitely a great use of “Other People Money.”

[Caardvark]

Wait... I must be missing something here. 

If I understand correctly, the money is currently cash he has at NFCU. NFCU is going to use the cash as collateral on a loan to him at 2.29%. 

How is this borrowing "other people's money?" It seems to me he is borrowing his own money and paying for the privelage to do so. 

[Shooting-For-800]

He is paying 2% not getting 2%.

OP -  If you have other debt higher than 3% apr that you are going to pay off with the money and want a safety net, it’s a good deal.

[tussking]

Yes that’s correct I am paying 2.29% and it reports as a regular loan. Sure I could just use my own cash but I think and maybe others can tell me (who’ve had more experience). I’d rather pay it off in 24-36 months and work towards that with a new loan reporting monthly than just blow my cash. I’m buying a luxury item that I can always sell for more. If I went into Mayors and used their credit it would be a new inquiry plus a few points higher for the new loan/credit card. Am I missing something?