Friday, July 24, 2009

Tapped Out Your Home Equity ATM?

Just when I thought the financial industry had wrung every last penny out of the credit machine, Wells Fargo steps up to astonish me.

Let's say you have maxed out your credit cards, your HELOC is a bad joke, and overtime at work is a no go because your company is hanging on by a thread financially...just where are you going to dig up some extra coin?

Look no further than that sweet 2004 Camry in your garage 'cause Wells Fargo has a deal for you! That's right, Wells Fargo is still allowing borrowers to take cash out refinances on vehicles. From Wells Fargo's own website:

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 Financial 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
back-to-school expenses
unplanned medical bills
vehicle expenses
home maintenance

Correct me if I am wrong, but vehicles are depreciating assets, meaning that over time they are worth less and less. Geez, Wells Fargo, what could possibly go wrong with that???

1 comment:

  1. Geez what's next - a boat equity loan?