When you "cash-out" refinance, you replace your current mortgage with a new, larger loan. You receive the difference in , which you then use to buy the car.
You are essentially paying for a car over 15 to 30 years .
Often has lower closing costs than a full refinance and allows you to borrow only what you need.
Paying for a car over 30 years means you will pay significantly more in total interest , even if the rate is lower.
If home values drop, you could end up "underwater," owing more on your house than it is worth. 💡 Better Alternatives?
Mortgage rates are typically much lower than unsecured personal loans or subprime auto loans.