Cash-out refinancing has hit its highest level in over a decade, increasing by 42% in 2020 over 2019. Freddie Mac reports that homeowners cashed out $152.7 billion of home equity, the largest amount since 2007.
With mortgage rates so low it’s possible to take out a sizable amount of cash while still lowering monthly payments. Fortunately the value of homes eeps increasing, unlie the Great Recession of 2008 when many homeowners ended up owing more than the homes were worth.
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