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.”
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