When should I cash-out refinance my car loan?
I've been thinking of cash-out refinancing for a few weeks. I'm just wondering if it's a good time to go through with it.
“A cash-out refinance is when you refinance your loan while also taking out an additional amount of cash against the equity on your loan. Sounds great, right? If you need some extra money for an emergency fund, future maintenance on your car, or upgrades to your vehicle, it’s not a bad choice.
Just keep in mind that you’ll also want to make sure you’re getting an equal or better interest rate than with the car loan you already have. And don’t forget — you may get a new hard inquiry on your credit report, which will lower your score by a few points for the next 12 to 24 months. “
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