If my bank approves me for a cash-out refinance, what should I do with the extra money?

"I just got approved for refinancing on my car loan, but the loan officer told me I'm eligible for a cash-out refinance.

I'm not sure if I should take this offer. If I do, what should I do with the extra money?"

“A cash-out refinance is a popular tool that people use to do a variety of things. You’re not obligated to do anything with the money, but here are a few examples of what you could do:
  • Pay down other debt
  • Do home repairs or other tasks that require some extra money
  • Put away cash for maintenance or car insurance
Or you could go on a vacation. It’s entirely up to you. But the idea is that you’re getting money at a low interest rate. If you’re unsure of what to do, or if you’re afraid that you’ll waste it, don’t take the money.”
Eric Schad
Answered on Jun 03, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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