Why Cash-Out Refinances Are Booming Right Now – Today’s Mortgage & Real Estate News – Growella


Yippie Kay-yay Mister Falcon! I’m Dan on your inside team at Growella, welcoming
you to the party pal. This is today’s Mortgage Minute-and-a-Half. Fool me once shame on you. Fool me twice, well you know the rest. And so do homeowners who are hitting the cash
out mortgage refinance hard. New data from government-backed Freddie Mac
shows cash out refis accounting for sixty-three percent of all refinances made last quarter,
marking the highest percentage of cash-out refis since 2008, not coincidentally, one
year into last decade’s housing market downtown. This year’s resurgence is the result of low
mortgage rates and rising values of homes, but it’s the safety angle that’s most interesting. Cash-out refinances unlock a homeowner’s home
equity, converting an illiquid asset into cash which can be used for whatever — to
pay down credit cards, to make college tuition payments, to finance home improvements. Also, to do a re-balance on your portfolio
of investments. Remember than home equity is an asset and
the typical refinancing household has witnessed a sixteen percent increase in home value since
the date of last mortgage, and that’s created a massive asset class overweight for a lot
of U.S. homeowners. Last decade, exposure like that made for some
long-term damage. This decade, homeowners are playing it differently. So if your home is up big in value, talk to
your lender at least discuss your cash out options. I got a fever and the only prescription is
more mortgage news. Today’s rates for conforming loans, FHA loans,
VA loans and USDA are all trending higher, raising monthly payments for active buyers
of homes. And, what are today’s mortgage rates? That depends. Your mortgage rate is based on your loan size,
your credit score, and where you live. How you pay your closing costs matters, too. Loans with points typically come with lower
rates, but paying points may not be good for your sitch. So talk to your lender about your options
and make the choice that;s best for you. The white zone is for loading and unloading. There are no mortgage rates in the red zone. Today’s rates for conforming loans, FHA loans,
VA loans and USDA are all trending lower, lowering monthly payments for active buyers
of homes. And, just how low are today’s mortgage rates? That depends. Your mortgage rate is based on your loan size,
your credit score, and where you live. How you pay your closing costs matters, too. Loans with points typically come with lower
rates, but paying points may not be good for your sitch. So talk to your lender about your options
and make the choice that;s best for you. The more things change, the more they stay
the same. Except in mortgages. Things never stay the same. Everything changes. Take last year. Government-backed Fannie Mae made sixty-eight
changes in its official mortgage rulebook. Sixty-eight. That’s more than one per week and changes
like that change the way that mortgage loans are approved. In-between jobs and buying a home? Your lender can do that mortgage now. Carrying debt from student loans? Your lender can exclude some of them now. Planning to make a small down payment? Your lender has more options for you now. These are all things that are new, and it’s
one of the reasons why you can’t rely on random webpages or your Aunt Jenny in real estate
to tell you whether or not you’re eligible to get a loan. You got to talk with a lender because everything
changes and, right now, mortgage rules are as loose as they’ve been in years. Talk with a lender. It’s an excellent time to see what you can
do. Growella does mortgage news three times weekly,
Share us with your office, leave a like, leave a comment, and remember that a person should
not believe in an ism. A person should believe in himself. Ferris Bueller said that. [WAIT] But he’s sick. My best friend’s sister’s boyfriend’s brother’s
girlfriend heard from this guy who knows this kid who’s going with the girl who saw Ferris
pass out at 31 Flavors last night. I guess it’s pretty serious. [THANK YOU DAN] No problem whatsoever.

Paul Whisler

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