> Cash Out Auto Refinance Loans
Cash Out Auto Refinance Loans
At some point in a person's life they are going to be in need of some extra cash. Whether it's to pay an outstanding bill, a medical emergency, or for a "just-in-case" measure it's bound to come up. So how can you free up cash without selling your valuables? Apply for a cash out auto refinance from a local car refinancing lender
What is a Cash Out Refinance?
A cash back auto refinance is a loan obtained from a new lender for the value of the car, (not just what you owe on it) to pay off your original loan. In simple terms, if you have any equity in your car (the car is worth $10,000 but you only owe $8,000, therefore you have $2,000 in equity) you can take that extra $2,000 as cash for whatever you need it for. This is generally a good idea when you have a lot of other bills to pay off or you have major equity in the vehicle.
Unfortunately, not everyone is eligible for a cash back refi. Not only do you have to have equity in your auto; you also have to have a good credit score. This is because lenders are taking a big chance on losing money with cash back auto refinancing
. Should you default on the loan they will have to sell the vehicle at auction, and the loan balance may be greater than what buyers are willing to pay. Therefore, if your credit score still isn't stellar it may be in your best interest to wait until it is in the "prime" category to refinance.
Get Out of a Bad Car Loan With Auto Refinancing
If you're current loan was obtained when your credit score wasn't perfect, your loan balance is $7,500 or more with two or more years left to pay, and your vehicle is less than seven years old you may be able to save yourself a lot of money - and free up some cash - with an refi. Apply online now
to be matched with a lender nearest you.