Borrowers inching back into Cash-Out Refinancing
The first quarter of 2015 was the third in a row that more than half of the refinances funded through Freddie Mac were cash out transactions. The company said that 27 percent of its refinancing loans were cash out compared to 27 and 28 percent in the third and fourth quarters of 2014 respectively.
In the first quarter of last year cash-outs represented 17 percent of the total.
This shows that the pendulum of borrowing which has swung from ridiculous to tight in the years from 2005 to 2013 is finally starting to swing to the middle. This is good for home sales as more people will be able to qualify.
