 TITLE: What Is a Cash-Out Auto Refinance? CONTENT: How Does a Cash-Out Auto Refinance Work?\n----------------------------------------\nIf your vehicle is worth more than the remaining balance on your loan, you may be able to do a cash-out auto refinance.\nLike a regular auto refinance, your new loan will cover the remaining balance on your original loan and possibly nab you a lower interest rate or a modified loan term. Where a cash-out auto refinance differs, however, is that your new loan will be larger than your original loan. The difference between the loan amounts will be deposited into your bank account to be used to make purchases, pay bills or consolidate debt, for instance.\nA cash-out auto refinance is similar to a cash-out refinance mortgage loan, which gives you the ability to replace your current mortgage loan and take some of the equity you have in your home in cash.\nFor example, let's say your car is worth $10,000, but your loan has a remaining balance of just $2,000. You may be able to refinance your loan for up to $10,000 and take the $8,000 difference in cash.\nThe amount you can get in cash will depend on a few factors, including how much you owe, the value of the vehicle and the lender. Some lenders may allow borrowers to get a new loan that's 100% of a vehicle's value, but actual terms can vary.\nWhen you apply for a cash-out auto refinance, a lender will review your existing loan information, determine the value of your vehicle, and review your credit and financial information to determine whether you qualify.\nJust keep in mind that not all lenders that offer auto refinance loans allow cash-out options. As a result, you may need to take some time to research and compare the lenders that do. END