Services
Insurance
Repairs
Advice
About

Can I buy a car while refinancing my house?

I’ve recently had a sudden improvement in my financial situation, so I’m in the process of refinancing my house. My wife really wants a new car, and now that I can afford it I would love to get one for her. Would it be bad to get a car loan while I’m refinancing my house?

avatar
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
It’s wonderful that you have some added financial security! While it is possible to buy a car and refinance your house at the same time, it’s not advisable to take out a new loan until you’ve completed the refinancing process. This is because taking out a new loan will affect your debt-to-income (DTI) ratio.
A higher DTI can make it more difficult to qualify for a good rate on your mortgage. Since the whole point of refinancing your mortgage is typically to get a better rate, it’s usually best to wait until you’ve finished refinancing before taking on additional debt.
If you’re able to, though, you could try to
buy a car
outright without taking out a loan. That way you won’t have to take on more debt in order to purchase the vehicle!
When you do get a new car, you’ll also need insurance. The
Jerry
app can provide you with personalized quotes for the coverage you need. Jerry takes care of all the phone calls and paperwork, so you can enjoy the best rates on your car insurance without any of the hassles!
Hope that helps!
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings