Tag Archive for: cash out

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

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

Student Loan Cash-Out Refinances

Millennials are one of the largest demographics and have taken the housing market by storm. Millennials accounted for 38 percent of home purchases in 2020 and more than half of all new mortgages. Yet, while millennials make up a sizeable portion of the housing market, over 45% of millennials have student loan debt. For homeowners […]Read More

Are Home Equity Loans Tax Deductible?

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

Beware Of Fake Vendors Pretending To Be Us; Paying Off HELOC = Cash Out

BEWARE OF VENDORS IMPERSONATING LENDERS This is a quick reminder that some vendors, particularly sellers of “mortgage protection insurance” or other insurance products, often reach out to new homebuyers shortly after close. These vendors often see the name of the funding mortgage bank on county records and then reach out to homebuyers, pretending to be […]Read More

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

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