Cash-out refi’s at their highest rate since 2009

Cash-out refi’s at their highest rate since 2009

Cash-out refi’s at their highest rate since 2009
American homeowners are tapping their home’s equity more than at any point in the last decade. Even with slight increases in mortgage rates, cash-out refinances still offer better terms that most other short-term borrowing options consumers have.

“For some homeowners, the trade-off is worth it,” according to a Wall Street Journal story citing mortgage-data firm Black Knight. “While mortgage rates have crept up, they are still lower than what borrowers would pay if they tapped a credit-card or home-equity line of credit.”

A significant portion of the proceeds from a cash-out refinance is being used to pay off higher interest debt according to data.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.