Items Tagged with 'CASH-OUT REFINANCES'

ARTICLES

  • Older homeowners are spending big on home improvements

    Harvard study says aging homeowners will drive this market
    Home improvement spending continues to trend upward, with the latest data from Harvard’s Joint Center for Housing Studies putting the aggregate total at a new high of $424 billion. The home improvement sector can thank the Baby Boomers for that, as research shows older homeowners are spending big on home renovations and aren't expected to slow down anytime soon.
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  • These two catalysts could spark a surge in home equity use

    Here's how low interest rates and a wave of tech IPOs could affect the housing market
    This year, two geysers of pent-up wealth are set to erupt, and the ripple effect just might inspire more homeowners to utilize their home equity. That's the theory proposed by Bloomberg columnist Conor Sen in a recent op-ed, in which he examines the possibility that U.S. homeowners might once again embrace debt and leverage now that memories of the financial crisis are beginning to fade. Will 2019 be the year of equity access?
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  • More borrowers are raising their mortgage rate to cash out equity

    Cash-outs comprise greatest share of refinances since 2006 peak
    For several months now, cash-out refinances have been eating up a greater share of overall refi volume, and it appears the trend isn't about to slow down anytime soon. The latest report from Black Knight reveals that 82% of refinances originated in Q4 2018 were cash-outs, and that in two-thirds of these transactions, the borrower raised their mortgage rate in order to access their equity in cash.
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  • Amount of tappable equity falls again

    Q4 sees equity amounts backslide as home price growth slows
    The collective amount of equity available for homeowners to tap reached a record high last year, climbing above $6 trillion as home prices continued to appreciate at a steady clip. But now, tappable equity totals are retreating, with Black Knight data revealing a second consecutive quarter of declines as home price growth slows in many of the most expensive markets.
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  • Latest FHA shift to mitigate risks may shut out some homebuyers

    Recent changes to TOTAL Mortgage Scorecard have some lenders worrying they won't close
    Last week, the Federal Housing Administration took steps to mitigate risks to its single-family portfolio, announcing updates to its TOTAL Mortgage Scorecard that may flag some loans for manual underwriting. Chatter among members of the lending community suggests a number of originators are unhappy about the changes, fearing that the end result may be that some of their borrowers will be shut out of FHA financing.
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  • Here’s why the housing market should expect a cash-out refi boom

    High levels of equity and falling rates have experts predicting a surge in cash-outs
    Equity levels are climbing while mortgage rates are falling, and this has some predicting an inevitable boom in cash-out refinances. Capital Economics says the number of cash-outs will reach a 10-year high in the next couple of years. But before warning bells sound for those who remember the role cash-outs played in the collapse of the housing market, keep in mind that mortgage lending and consumer attitudes have changed since the mid-2000s.
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  • More homeowners are taking cash-out refis on government loans

    Borrowers with fewer alternatives are cashing in their equity
    While overall refinance activity is down, cash-out refis are up – and while true across the board, the trend is glaringly apparent among government-backed loans. Of all refinances on government-backed loans offered by the FHA and the VA, 76% were cash-outs – the highest share on record.
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  • Urban Institute: 4 FHA trends to watch in 2019

    These factors could impact performance in the year head
    A recent report by independent think tank the Urban Institute affirmed that the FHA continues to be "strong and profitable" for taxpayers, highlighting four trends to watch in the FHA's mortgage portfolio to gauge the probability of future success.
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  • Will 2019 bring a boom in home equity lending?

    Economists weigh in
    Certain dynamics shaping the market have led the occasional forecaster to predict a boom in home equity lending. Mortgage rates are rising, they say, prompting more to stay put and tap into their equity instead. So does this mean 2019 will see home equity lending soar? HousingWire asked three economists to weigh in, and here's what they had to say.
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