Cash-outs and cash-ins
Cash-out refinancing, so popular in recent years that homes were compared to ATMs, has slowed but not disappeared since the credit crunch. USA Today reports that homeowners extracted about $38 billion in equity this spring by refinancing loans held by Freddie Mac, vs. almost $80 billion a year earlier.
Also notable in the story:
Of those refinancing, 9% took out new loans that were smaller than their existing mortgages. Freddie Mac chief economist Frank Northaft calls the trend the biggest "cash-in" since 2005, possibly reflecting tougher lending standards.
