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The Idea of Cash-Out Refinancings

Cash-out refinancing held steady in the 2007 second quarter, but Freddie Mac predicted that the percentage of U.S. homeowners taking cash out of their properties will fall by a third before the end of the year.

Overall, there remains a large amount of equity in homes that homeowners can tap, but slowing home price appreciation will mean that more recent home buyers will not have built up much equity. In the last two quarters, 83 percent of Freddie Mac-owned loans that were refinanced went into new mortgages that were at least 5 percent higher than the original balances.

Hipotecas Prestamos August 10, 2007 08:32 AM