 TITLE: What Is a Cash-Out Auto Refinance? CONTENT: When Could a Cash-Out Auto Refinance Make Sense?\n------------------------------------------------\nThere are a few situations in which it might be a good idea to tap your car's equity through a cash-out auto refinance:\n*   **You can get better loan terms.** If your new loan would have a lower interest rate than your current one, refinancing with or without cash back may be a good idea. Securing a lower rate is more likely if your credit score has improved or market interest rates have dropped since you took out your original auto loan. And if you need a little cash for something else, a lower interest rate could keep your monthly payment around the same as it was on your original loan.\n*   **You want to consolidate debt.** If you qualify for a low interest rate on an auto refinance loan, but you have higher-interest debt you want to pay off, getting cash back on your refinance loan could allow you to pay off that more expensive debt, essentially consolidating it into the low-interest loan. Consolidating unsecured debt this way will convert it to secured debt, meaning you risk repossession if you're unable to pay it back.\n*   **You have emergency expenses.** If your financial situation is tight, a cash-out auto refinance could be a relatively inexpensive way to get some cash to pay for emergency expenses. With good credit, you can get a much better rate with an auto refinance loan than with a personal loan or credit card.\nConsider your situation to determine whether a cash-out auto refinance can help you. END