Tag Archive for: cash out refi

Record Equity + Certain Inflation + Uncertain Economy = Cash-Out Now (4 Reasons Why)

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TOTAL HOME EQUITY SURGES TO INSANE RECORD Prior to the 2008 meltdown, total home equity (the value of all homes minus all mortgage debt) in the U.S. peaked in 2005 at $14.4 TRILLION. Last year, total home equity hit $21.1 trillion – crushing the 2005 record (here is a table showing total home equity from […]Read More

Are Home Equity Loans Tax Deductible?

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Homeowners cannot claim tax deductions on home equity loans in some cases. However, they can still benefit from cash-out refinancing programs to use the equity they’ve accrued in their homes. The Tax Cuts and Jobs Act, signed by President Trump in December 2017, introduced this change. Interest paid on home equity loans is no longer […]Read More

Cash Out Vs. Rate & Term Refis – What’s The Big Deal?

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Prior to the 2008 meltdown, as much 90% of all refinances were “cash out,” meaning borrowers increased their loan amount with almost every refinance. That percentage has since dropped to about 50%, as borrowers are more conservative nowadays and they don’t want to incur the extra cost associated with cash out refinances. Borrowers are allowed […]Read More

Buying Out Spouse/Partner = Refi; Not Cash Out or Purchase

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We recently received the below email from a borrower who left us for what he thought was a lower rate.  “Hi Casey, The other lending company fell through and couldn’t get us a loan in time. Their customer support was horrible and wouldn’t provide me with a direct answer. We would like to see if […]Read More

Cash Out Refi’s Back – For Good Reasons This Time; Down Payments?

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Prior to the meltdown in 2006, almost 90% of all refi’s were “cash out,” meaning that borrowers increased the size of their loan with their refi. Borrowers effectively used their homes as ATMs, and used the cash from their refi’s to buy expensive cars, time-shares, vacations, boats and other luxury goods. Heejin and I bore […]Read More