Here is an article about homeowners pulling cash out of their homes ...Wednesday, May 3, 2006Steve Kerch Dow Jones Business NewsCash-out financing is at its highest level in 15 years, Freddie Mac reported this week.The mortgage agency said that 88 percent of loans it owns that were refinanced in the first quarter resulted in new mortgages with loan amounts that were at least 5 percent greater than the original mortgage balance.More than 50 percent of the new loan rates were higher than the rate on the loan they replaced. One reason homeowners might be doing that is the increase in home-equity loan rates, says Frank Nothaft, Freddie Mac’s chief economist.Home-equity loans are typically a point or two higher than the prime rate, which currently stands at 7.75 percent.Overall, Freddie Mac expects overall cash-refinancing to pump $170 billion into the economy this year, down substantially from the $244 billion in 2005.Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula
