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?"

Answer
“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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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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