This sounds like a spoof but it’s actually called Securitization.
Why else would they refinance a vehicle for more than its current value?
Responsible Lending, HA!
Understanding Cash Out Refinance Loans
Obtaining a cash out refinance loan means applying for a new loan to pay off an existing loan and receiving cash after it is repaid. Cash out refinance loans apply to home loans and auto loans.
You may seek an auto cash out refinance loan to:
- Change your auto loan terms
- Access cash
- Restructure (consolidate) other credit accounts
Cash Out Refinance Loan Benefits
With an auto cash out refinance, you could:
You may be able to borrow more than it takes to pay off your existing auto loan with a cash out refinance loan.
In fact, Wells Fargo is one of the few lenders that will refinance a vehicle for more than its current value. That means access to cash over and above the value of the new cash out refinance auto loan.
Use the available cash however you choose. For example:
- holiday expenses
- summer landscaping
- unplanned medical bills
- vehicle expenses
- home maintenance
Cash Out Refinance Fact:
Customers who refinanced their auto loans with Wells Fargo received up to $3,410 cash out or more.
Use the available cash to go on vacation? Really?