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.
Answer provided by
Answered on Apr 07, 2021
“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. “
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
How do I get a car loan for an imported vehicle?
I'd like to import a BMW that I've been coveting for years, but I can only buy it with a car loan. How do I get a loan?
Mar 08, 2021
Does car insurance cover engine failures?
I haven't gotten into an accident or anything, but my car's engine is starting to break down. I do have car insurance. Will that cover the engine?
Feb 25, 2021
What kind of credit do you need to get a good rate for auto insurance?
I finally saved up enough to buy a car in cash. My credit history is terrible, but I have been working really hard to improve it. I need insurance for the state of California. Will I be eligible for a policy?
Apr 14, 2021