Cash Out Refinance

[Grim87]

Hi all - I was looking to get some feedback on a lender that would do a cash out auto refinance. I currently have $7,000 in equity (per NADA, versus what I owe) in one vehicle that is financed through PenFed. I have already tried DCU and SECU but they denied me current revolving utilization (40%), which is why I want to do the cash out, to pay small cards off. 

Here are my DPs; EQ 676, EX 674 and TU 654 (TU Mortgage is 702) along with about 36% DTI (mainly mortgage, student loans and small cards) at the moment and $147,500 income.

Any recommendations on a bank/CU to go through for this? Thanks!!

[pizzadude]

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@Grim87 wrote:

Hi all - I was looking to get some feedback on a lender that would do a cash out auto refinance. I currently have $7,000 in equity (per NADA, versus what I owe) in one vehicle that is financed through PenFed. I have already tried DCU and SECU but they denied me current revolving utilization (40%), which is why I want to do the cash out, to pay small cards off. 

Here are my DPs; EQ 676, EX 674 and TU 654 (TU Mortgage is 702) along with about 36% DTI (mainly mortgage, student loans and small cards) at the moment and $147,500 income.

Any recommendations on a bank/CU to go through for this? Thanks!!

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I think a CU is probably your best shot at getting close to 100% LTV, sorry that you were not approved at DCU, SECU.   If you haven't attempted a recon it might be worth a quick call to explain.

Another approach, if your mortgage scores are better you might consider a HELOC or similar, assuming that you have enough equity in your house

[Anonymous]

@Grim87 I'm looking to do a cash out auto refinance also.  Did you inquire with DCU and SECU before you applied to make sure they do cash out auto refi's?  Just curious because I was going to call them on Monday.  And any updates on your situation?  Were you able to find a cash out auto refi lender?  Thanks.

[jeffm4688]

I recently got penfed to actually do a cash out refinance on their own loan. My grandmother has a vehicle which she had $20k in equity in (and was paying 26% APR on a BoA credit card) and I ended up getting a rep who was able to do everything on their end.

It wasn't a straight forward conversation, I basically had to call and ask and my first rep said 'we don't do that' but when I explained that I would like to continue doing business with penfed and I have an approval at another company(who I didn't find out wouldn't do a cash out refi until after I had applied) they were able to work something out. They basically ended up cutting two checks for the new loan, one for the equity in just my grandmothers name & one for the old payoff which she had to endorse and send back.

[DaveInAZ]

I did this last fall, refinanced my DCU car loan with a local AZ CU, Vantage West. VW was running a special and I got a 4 year loan on my 2016 Mazda for 2.49% on a $10k loan; my DCU loan was 2.99% I got in 2017. But I didn't mention any "cash out" refi, I just said I wanted a $10k loan on my car that was worth around $12k. So VW send a check to DCU for $10k, and they credited my savings account for the $3k & change for the over payment. But FYI, my EX Fico 8 was arround 765 at the time. 

With used cars rising in value around 40%*** in the past year due to the computer chip shortage for new cars  refinancing a car loan can be a good idea, especially if you have high interest other debt. Just tell the new lender to send a check to your loan amount to your current lender, they'll get the over payment to you. 

*** Vantage West came back with a value on my 2016 Mazda of $12k last Sept., according to kbb.com (Kelly Blue Book) it's now worth $14-15k. I only paid $17k for it back in 2017 - I'd trade it in on a new car, if there were any new cars to buy, lol.