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CASH-OUT REFINANCE TO BUY A CAR
March 19, 2009 by Mortgage Align · Leave a Comment
A home and a car are two of the biggest purchases people ever make. You can use a cash-out mortgage refinance on the home loan to buy a new car.
• Mortgage turns into money machine
Cash-out refinance requires you to refinancing the first mortgage. After the refinance is closed, the mortgage lender will give you cash that you need to withdraw. Then this cash can be recycled into buying the car.
• Tax deductibility, more attractive.
Consider a second mortgage, which includes a fixed-rate home equity loan or a home equity line of credit, which is better than first mortgage with high closing costs. Recycling home equity to buy a car is a good decision, for low tax deductibility and lower monthly payments makes it better than a proper car loan.
