Quoted: general consensus is yes, if you cant pay back the cash out, you'll lose your home over a car. If you cant pay back a regular car loan, you'll lose your car but get to keep your house, maybe longer than you intend to since your credit will be shot
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That really makes no sense because it's a LOT harder to make a monthly car loan payment than the refinance payments for the same amount.
$30K cashout refi = an additional $170/mo payment (approx)
$20K auto loan = an additional $400/mo payment (approx)
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$50K loan totals = an additional $570/mo payment
Compared to
$50K cashout refi = an additional $280/mo payment (approx)
So basically it's
$570/mo extra versus
$280/mo extra.
I'd say it's far easier to afford an extra $280/mo than $570/mo, wouldn't you?