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Refi Cash-Outs Lowest in 16 Years
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Refi Cash-Outs Lowest in 16 Years
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Refi Cash-Outs Lowest in 16 Years
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Mortgage Rates
Home Buying Tips
Home Selling Tips
About Mortgages
Mortgage Calculator
Mortgage Rates

November 8, 2011 (Jeff Alan)

The amount of cash that borrowers who refinanced their mortgages took out against their home’s equity was at the lowest levels in 16 years according to Freddie Mac’s third quarter refinance analysis.

Eighteen percent of all refinanced loans in the third quarter of 2011 were “cash-out” borrowers, those that increased their loan by at least five percent, down from 23 percent in the second quarter.

Borrowers who refinanced their mortgages “cashed-out” – converting home equity to cash – an estimated $5.3 billion in the quarter, the least amount of equity converted to cash since 1995.

The average percentage of cash-outs during the 1985-2010 period was 46 percent.

Eighty-two percent of the homeowners who refinanced their first-lien home mortgage during the third quarter either maintained the same loan amount or lowered their principal by putting “cash-in.” Forty-four percent maintained about the same loan amount while 37 percent of refinancing homeowners put cash in, reducing their principal.

Cash-out refinance volume peaked in the second quarter of 2006 at $83.7 billion. The amount of cash borrowers took out of their homes in the third quarter was less than seven percent of that total amount.

For 30 year fixed rate mortgages, the median interest rate reduction during the quarter was about 1.2 percentage point, or about 22 percent below their initial rate, which allowed borrowers to save about $2,500 in interest payments in the first year of their loan with a principal of $200,000.

Frank Nothaft, Vice President and chief economist of Freddie Mac stated, “Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings. Fixed-rate mortgage rates hit new lows during September, with 30-year product averaging 4.11 percent and 15-year averaging 3.32 percent that month, according to our Primary Mortgage Market Survey.”

Tags: Freddie Mac, home equity, borrowers, refinance, cash-out, cash-in, principal, interest, interest rate reduction

Source:
Freddie Mac

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at Mortgageloanrateupdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Home Buying
Tips
Home Selling
Tips
About
Mortgages
Mortgage
Calculator
Mortgage
Rates

November 8, 2011 (Jeff Alan)

The amount of cash that borrowers who refinanced their mortgages took out against their home’s equity was at the lowest levels in 16 years according to Freddie Mac’s third quarter refinance analysis.

Eighteen percent of all refinanced loans in the third quarter of 2011 were “cash-out” borrowers, those that increased their loan by at least five percent, down from 23 percent in the second quarter.

Borrowers who refinanced their mortgages “cashed-out” – converting home equity to cash – an estimated $5.3 billion in the quarter, the least amount of equity converted to cash since 1995.

The average percentage of cash-outs during the 1985-2010 period was 46 percent.

Eighty-two percent of the homeowners who refinanced their first-lien home mortgage during the third quarter either maintained the same loan amount or lowered their principal by putting “cash-in.” Forty-four percent maintained about the same loan amount while 37 percent of refinancing homeowners put cash in, reducing their principal.

Cash-out refinance volume peaked in the second quarter of 2006 at $83.7 billion. The amount of cash borrowers took out of their homes in the third quarter was less than seven percent of that total amount.

For 30 year fixed rate mortgages, the median interest rate reduction during the quarter was about 1.2 percentage point, or about 22 percent below their initial rate, which allowed borrowers to save about $2,500 in interest payments in the first year of their loan with a principal of $200,000.

Frank Nothaft, Vice President and chief economist of Freddie Mac stated, “Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings. Fixed-rate mortgage rates hit new lows during September, with 30-year product averaging 4.11 percent and 15-year averaging 3.32 percent that month, according to our Primary Mortgage Market Survey.”

Tags: Freddie Mac, home equity, borrowers, refinance, cash-out, cash-in, principal, interest, interest rate reduction

Source:
Freddie Mac

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at MortgageLoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

November 8, 2011 (Jeff Alan)

The amount of cash that borrowers who refinanced their mortgages took out against their home’s equity was at the lowest levels in 16 years according to Freddie Mac’s third quarter refinance analysis.

Eighteen percent of all refinanced loans in the third quarter of 2011 were “cash-out” borrowers, those that increased their loan by at least five percent, down from 23 percent in the second quarter.

Borrowers who refinanced their mortgages “cashed-out” – converting home equity to cash – an estimated $5.3 billion in the quarter, the least amount of equity converted to cash since 1995.

The average percentage of cash-outs during the 1985-2010 period was 46 percent.

Eighty-two percent of the homeowners who refinanced their first-lien home mortgage during the third quarter either maintained the same loan amount or lowered their principal by putting “cash-in.” Forty-four percent maintained about the same loan amount while 37 percent of refinancing homeowners put cash in, reducing their principal.

Cash-out refinance volume peaked in the second quarter of 2006 at $83.7 billion. The amount of cash borrowers took out of their homes in the third quarter was less than seven percent of that total amount.

For 30 year fixed rate mortgages, the median interest rate reduction during the quarter was about 1.2 percentage point, or about 22 percent below their initial rate, which allowed borrowers to save about $2,500 in interest payments in the first year of their loan with a principal of $200,000.

Frank Nothaft, Vice President and chief economist of Freddie Mac stated, “Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings. Fixed-rate mortgage rates hit new lows during September, with 30-year product averaging 4.11 percent and 15-year averaging 3.32 percent that month, according to our Primary Mortgage Market Survey.”

Tags: Freddie Mac, home equity, borrowers, refinance, cash-out, cash-in, principal, interest, interest rate reduction

Source:
Freddie Mac

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
MORTGAGELOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.