New Home
Mortgage News

Cash-out refinancing is approaching pre-recession levels in United States

Prior to the economic crash in 2008, U.S. homeowners were doing so-called “cash-out” refinancing at an unprecedented rate.

More than 10 years later, these maneuvers are returning to levels not seen since the Great Recession, according to a new study from ReFi Guide.

Much of the refinancing seen in 2019 has been in response to falling mortgage rates, which allow homeowners to renegotiate their mortgages on more favorable terms.

But a percentage of those refinancing are looking to cash out some of their equity, usually because the value of their home has increased. They end up taking on a bigger mortgage with higher payments, but in the short-run, they get an influx of cash from their property.

In the run-up to the Great Recession, ReFi Guide notes that nearly 90% of refinances were cash-out events. Unfortunately, when home values plummeted and jobs were lost across the country, that cash wasn’t enough to help affected homeowners pay their higher mortgages on devalued homes.

“At the peak of financial frenzy in 2006, the cash-out portion of the refinancing was 31% of the total mortgage,” the report says. “Put differently, people would have had a 31% lower monthly mortgage payment if they hadn’t pulled cash out.”

While that figure dropped to near-zero after the Recession, cash-out refinancing has recovered considerably in recent years. By the end of 2018, more than 80% of refinances were again cash-outs. The cash-out portion had climbed again to 23%.

From the report:

In some ways, cash-out refinancing gets a bad rap. Your house is a financial asset and this kind of refinancing allows you to convert some of the equity to cash. That cash can be used wisely or even invested. But that cash can also evaporate if spent on a vacation or a luxury item and then you’re just left with a bigger mortgage to pay every month.

ReFi Guide

Different parts of the country have trended more heavily than others toward cash-out refinancing. It has been highest in the South (78.8%) and lowest in the Northeast (73.6%), but it’s clear that these events have become a norm across the industry in the past few years.

While there has been lingering concern about another recession, the factor of lower mortgage rates is helping some homeowners feel more comfortable refinancing with a cash-out. The shortage in existing home supply is also driving up the value of properties in many parts of the country.

The current trend doesn’t appear to be alarming at the moment, but it is important to keep an eye on this development as it relates to the economy as a whole.

Photo Credit: Pixabay

685 Comment

  1. Pingback: discount viagra
  2. Pingback: cialis coupon cvs
  3. Pingback: viagra for sale
  4. Pingback: best otc ed pills
  5. Pingback: best otc ed pills
  6. Pingback: generic cialis
  7. Pingback: walmart pharmacy
  8. Pingback: Get cialis
  9. Pingback: cialis online
  10. Pingback: levitra price
  11. Pingback: vardenafil canada
  12. Pingback: generic levitra
  13. Pingback: viagra cost
  14. Pingback: parx casino online
  15. Pingback: cash loan
  16. Pingback: viagra cost
  17. Pingback: 20 cialis
  18. Pingback: archie
  19. Pingback: CafeCasino
  20. Pingback: cialis buy
  21. Pingback: generic for cialis
  22. Pingback: generic for cialis
  23. Pingback: cialis generic
  24. Pingback: doubleu casino
  25. Pingback: viagra discount
  26. Pingback: sildenafil 100
  27. Pingback: buy viagra cheap
  28. Pingback: viagra generic
  29. Pingback: tadalafil 10 mg
  30. Pingback: canadian viagra
  31. Pingback: generic for viagra
  32. Pingback: buy online viagra
  33. Pingback: viagra generic
  34. Pingback: Viagra 25 mg nz
  35. Pingback: viagra
  36. Pingback: Viagra 200 mg uk
  37. Pingback: viagra vs cialis
  38. Pingback: Cialis 80mg usa
  39. Pingback: buy generic cialis
  40. Pingback: look at here
  41. Pingback: Cialis 80 mg price
  42. Pingback: Cialis 80mg uk
  43. Pingback: generic viagra
  44. Pingback: viagra 100mg
  45. Pingback: canadian pharmacy
  46. Pingback: furosemide 40mg uk
  47. Pingback: propecia 5mg price
  48. Pingback: canadian viagra
  49. Pingback: abilify 20mg price
  50. Pingback: amaryl 2 mg price
  51. Pingback: viagra coupons
  52. Pingback: cialis etkileri
  53. Pingback: atarax 10mg cheap
  54. Pingback: buy avapro 300mg
  55. Pingback: avodart 0,5 mg nz
  56. Pingback: benicar 40 mg otc
  57. Pingback: cialis 5mg
  58. Pingback: buy viagra online
  59. Pingback: levitra or viagra
  60. Pingback: casodex 50 mg uk
  61. Pingback: buy cialis online
  62. Pingback: ceftin generic
  63. Pingback: cialis generic
  64. Pingback: claritin canada
  65. Pingback: casino real money
  66. Pingback: free slots
  67. Pingback: slot machine
  68. Pingback: casino gambling
  69. Pingback: online casinos
  70. Pingback: rivers casino
  71. Pingback: best car insurance
  72. Pingback: viagra buy
  73. Pingback: e insurance auto
  74. Pingback: autoinsurance
  75. Pingback: tadalafil
  76. Pingback: buy cialis online
  77. Pingback: utah payday loans
  78. Pingback: payday loans pa
  79. Pingback: buy cialis
  80. Pingback: buy cbd oil online
  81. Pingback: cbd pills sale
  82. Pingback: buy levitra usa
  83. Pingback: Pharmacy viagra
  84. Pingback: payday loans
  85. Pingback: french homework
  86. Pingback: online essay
  87. Pingback: buy cheap essays
  88. Pingback: buy college essay
  89. Pingback: clonidine online
  90. Pingback: Discount viagra
  91. Pingback: generic viagra buy
  92. Pingback: Order viagra
  93. Pingback: generic cialis
  94. Pingback: coumadin tablets
  95. Pingback: essay services
  96. Pingback: buy crestor
  97. Pingback: cymbalta generic
  98. Pingback: online thesis help
  99. Pingback: research thesis
  100. Pingback: order dapsone caps
  101. Pingback: ddavp medication
  102. Pingback: Canada meds viagra
  103. Pingback: diamox 250mg price
  104. Pingback: differin australia
  105. Pingback: diltiazem 120mg uk
  106. Pingback: dramamine generic
  107. Pingback: elavil 25 mg nz
  108. Pingback: generic Nolvadex
  109. Pingback: flomax pills
  110. Pingback: cheapest geodon
  111. Pingback: buy cialis
  112. Pingback: imdur 40mg tablet
  113. Pingback: cialis online
  114. Pingback: viagra vs cialis
  115. Pingback: imodium uk
  116. Pingback: viagra pill
  117. Pingback: order imuran
  118. Pingback: indocin usa
  119. Pingback: lopid 300 mg uk
  120. Pingback: macrobid online
  121. Pingback: buy micardis 40 mg
  122. Pingback: cheap Valtrex
  123. Pingback: cheap motrin 200mg
  124. Pingback: Benicar
  125. Pingback: periactin nz
  126. Pingback: phenergan pharmacy
  127. Pingback: prevacid 30mg nz
  128. Pingback: buy proair inhaler
  129. Pingback: buy procardia
  130. Pingback: buy viagra online
  131. Pingback: proscar purchase
  132. Pingback: provigil canada
  133. Pingback: pulmicort tablets
  134. Pingback: pyridium 200mg usa
  135. Pingback: reglan medication
  136. Pingback: periactin medicine
  137. Pingback: remeron 30 mg usa
  138. Pingback: robaxin nz
  139. Pingback: rogaine generic
  140. Pingback: seroquel 200mg usa
  141. Pingback: buy skelaxin
  142. Pingback: spiriva purchase
  143. Pingback: toprol 25 mg usa
  144. Pingback: tricor otc
  145. Pingback: valtrex 1000mg uk
  146. Pingback: wellbutrin nz
  147. Pingback: zanaflex 2 mg otc
  148. Pingback: Click Here
  149. Pingback: zocor tablets
  150. Pingback: zovirax tablet
  151. Pingback: zithromax 250 mg
  152. Pingback: las vegas viagra
  153. Pingback: zyvox prices
  154. Pingback: glimepiride coupon
  155. Pingback: sildenafil
  156. Pingback: buspirone generic
  157. Pingback: generic cialis
  158. Pingback: buy clindamycin
  159. Pingback: warfarin otc
  160. Pingback: cialis free offer
  161. Pingback: bisacodyl tablets
  162. Pingback: venlafaxine cheap
  163. Pingback: buy cialis doctor
  164. Pingback: viagra generic
  165. Pingback: 141genericExare
  166. Pingback: erythromycin cheap
  167. Pingback: 141generic2Exare
  168. Pingback: ybmnoxer
  169. Pingback: order etodolac
  170. Pingback: best ed medication
  171. Pingback: hkegutwm
  172. Pingback: ed pills otc
  173. Pingback: nitrofurantoin usa
  174. Pingback: buy glipizide 5mg
  175. Pingback: lasix generic name
  176. Pingback: viagra 75 mg
  177. Pingback: cleocin price
  178. Pingback: buy clindamycin
  179. Pingback: erythromycin price
  180. Pingback: terramycin generic
  181. Pingback: cialis generic
  182. Pingback: cialis in europe
  183. Pingback: viagra
  184. Pingback: indomethacin nz
  185. Pingback: levitra vs viagra
  186. Pingback: lamotrigine tablet
  187. Pingback: cialis in europe
  188. Pingback: furosemide 4 mg
  189. Pingback: viagra price
  190. Pingback: iv prednisolone
  191. Pingback: starting synthroid
  192. Pingback: essaywriteris.com
  193. Pingback: phd degree
  194. Pingback: propecia hair
  195. Pingback: neurontin rash
  196. Pingback: metformin amazon
  197. Pingback: clomid tablet
  198. Pingback: tadalafil natural
  199. Pingback: propecia for sale
  200. Pingback: how to cure ed
  201. Pingback: in europe
  202. Pingback: buy viagra online
  203. Pingback: tinder cringe
  204. Pingback: buy online viagra
  205. Pingback: utah adult dating
  206. Pingback: eu pharmacy online
  207. Pingback: cocaine cialis
  208. Pingback: buy cialis now
  209. Pingback: cialis sale 20mg
  210. Pingback: valtrex price
  211. Pingback: treatment for ed
  212. Pingback: cytotmeds.com
  213. Pingback: canadian pharmacy
  214. Pingback: ivermectin topical
  215. Pingback: generic stromectol
  216. Pingback: plaquenil cost uk
  217. Pingback: ivermectin otc
  218. Pingback: how much is viagra
  219. Pingback: cialis vs. viagra
  220. Pingback: zithromax capsules
  221. Pingback: erection pills
  222. Pingback: plaquenil price us
  223. Pingback: quetiapine reddit
  224. Pingback: celexa vs cymbalta
  225. Pingback: viagra price
  226. Pingback: viagra cost
  227. Pingback: generic viagra
  228. Pingback: plaquenil is for
  229. Pingback: otc viagra
  230. Pingback: cialis 24 hours
  231. Pingback: cialis uk
  232. Pingback: cialis mexico
  233. Pingback: cialis 10
  234. Pingback: sildenafil citrate
  235. Pingback: duloxetine 75 mg
  236. Pingback: buy viagra online
  237. Pingback: amoxicillin treats
  238. Pingback: ed cialis
  239. Pingback: viagra sample
  240. Pingback: propecia dht
  241. Pingback: ivermectin 10 ml
  242. Pingback: ivermectin dosage
  243. Pingback: buy doxycycline
  244. Pingback: viagrasao.com
  245. Pingback: order doxycycline
  246. Pingback: black cialis
  247. Pingback: cialis wirkung
  248. Pingback: best ed treatments
  249. Pingback: off brand viagra
  250. Pingback: online ed meds

Comments are closed.