What Is Cash-out Auto Refinancing?

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is a Cash Out Refinance?
Can You Cash Out Refinance a Car?
How Does a Cash Out Refinance Work?
Which Kinds of Lenders Offer Cash Out Refinancing?
Banks Credit unions Private lenders
Does a Cash Out Refinance Affect Your Interest Rate?
When Can You Cash Out Refinance a Car?
How Often Can You Cash Out Refinance?
How Soon Can I Cash Out Refinance?
Does a Cash Out Refinance Affect Your Credit Score?
What Credit Score Is Needed for a Cash Out Refinance?
How Long Does a Cash Out Refinance Take?
What Are the Pros and Cons of a Cash Out Refinance?
Pros of Cash Out Refinancing
You can potentially borrow money at a lower cost than a high-interest personal loan or credit card You may be able to secure a lower interest rate than your existing loan rate You can take advantage of your available equity in a valuable asset
Cons of Cash Out Refinancing
You could pay more interest over the life of the loan if you spread out the payments over a longer period of time You’ll use your asset as collateral for the cash-out funds, which puts you at risk of losing your asset if you fail to repay the new loan It may replace your existing debt burden with a larger burden of debt
Is a Cash Out Refinance Taxable?
Are There Closing Costs on a Cash Out Refinance?
Alternatives to Cash Out Refinancing
Normal Refinancing
Consolidate Your Debt
Auto Equity Loans
Unsecured Loans
Auto Loan Refinancing Rates
Frequently Asked Questions
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About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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