Take Cash Out To Buy A Car, RV, or Boat

What is the Benefit?

Many clients prefer a cash out refinance to purchase a vehicle, RV, boat, etc. over a traditional stand-alone installment loan because of several important advantages:

Traditional Loan

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Interest rates for car, RV, boat loans are often higher than mortgage loans.

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Banks and lenders that make vehicle and boat loans often have strict qualifications, especially at the higher price points of $30,000+ and often like to see 10-25% down.

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The term of typical installment loan for a vehicle, RV or boat is 5-7 years and that combined with a higher rate, the payment may be substantially higher when compared to the payment of a cash out refinance mortgage.

What Will My Monthly Payment Be?

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No Credit Check

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No Application

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No Obligation

Cash-Out Refinance

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Interest rates for mortgages are typically quite a bit lower. It makes sense to borrow $30,000, $40,000, $50,000 etc. at a lower rate as part of your mortgage.

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With a cash out refinance, because you borrow the money against the equity of your home, you will end up paying most or all of the vehicle’s price in cash so there is no concern about a large down payment or extra stringent qualifications.

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With a cash out refinance, the payment is usually much lower because the rate is less and the term is longer (15,20 or 30 years).

For example, a $50,000 car loan at a rate of 4.99% would be around $943 per month, however that same amount borrowed against the equity of your home may be only $300-400 more than what you pay now. This is only an example of course and we are always happy to show you an apple-to-apple scenario to see if a cash out refinance would indeed make sense for you in lieu of a traditional vehicle loan. A cash out refinance is an ideal choice for many consumers especially given the recent substantial home equity increase.