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Borrowers inching back into Cash-Out Refinancing
Friday, May 1, 2015
first quarter of 2015 was the third in a row that more than half of the
refinances funded through Freddie Mac were cash out transactions. The company
said that 27 percent of its refinancing loans were cash out compared to 27 and 28
percent in the third and fourth quarters of 2014 respectively. In the first quarter of last year cash-outs
represented 17 percent of the total.
net dollars of home equity withdrawn in the quarter during refinance of
conventional prime-credit home mortgages was estimated at $7.7 billion, down
slightly from the fourth quarter. This pales
in comparison to the $84 billion in equity withdrawn in the second quarter of
2006, a year when 89 percent of refinancing was cash out.
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